Doctor Evil on Facebook
Oops! I just poked Doctor Evil on Facebook…
Follow up on KONG’s pre-ER run
As I predicted two days ago, KONG (KongZhong Corp) did pop up nicely today, up almost 10% from $5.75 to $6.4.
This was partly due to one of its major competitor LTON (Linktone Ltd.) raising its 4Q revenue guidance. Now I’m more interested to see what’s gonna happen for KONG on its ER day next Tuesday.
Rescue me
Charts talk
Q1: Will history repeat itself?
I have closed some of my long positions (CHL: China Mobile) and increased hedging (FXP: UltraShort Xinhua China 25 Proshare and QID: UltraShort QQQ ProShares). There could be a short-term rally, however I believe the long-term sentiment is still bearish.
Q2: KONG is breaking out?
No doubt! With less than a week to its ER on March 4, KONG (KongZhong Corp.) is having a nice run north, up about 14% in two weeks. Bullish thinking: a solid company, lots of cash, persistent and experienced management, and the rumored upcoming release of 3G licenses in China. KONG is one of my favorite small-cap in China, and I will write more about it later in a separate post.
Disclaimer: I long KONG.
Facebook et. al. losing their steam?
According to a report from BusinessWeek, social network sites seem gradually losing their steam.
Here’s a 50-words version:
- The good: Global ad spending on social networking sites in 2007 was up 155% to $1.2B. It is expected to grow 75% to $2.1B this year.
- The bad: According to ComScore, the average amount of time each user spends on social networking sites has fallen by 14% over the last four months.
- The ugly: No killer app to advertise and monetize social networks yet; click rate is about 4/10,000 vs. 20/10,000 on the Web. People on MySpace and Facebook et. al. are more interested in interacting with their friends than clicking on ads.
Your thoughts?
The All-New Gmail
Human Computing in the Web era! :-D
P.S. In case you don’t understand Russian: this is an Russian advertisement for Gmail by ad agency Saatchi Moscow.