July 5, 2005
SpeculatingStocks.com Stock Pick: eLong, Inc. (LONG)
Stock Price: $10.99 (long-term strong buy)
eLong, Inc. is a Chinese online travel agency whose name means "electronic dragon". The company was founded in 1999 and uses web-based distribution technologies to offer travel-related services including corporate travel services and vacation packages.
The company reported first quarter results on May 24th including revenue of $4.7 million and net loss of $850,000. Right now, there is $130.3 million in cash and cash equivalents on eLong's balance sheet.
Asian companies listed on U.S. exchanges have been heating up lately, and should only improve. Right now, LONG is trading at an $80 million market cap compared to Travelzoo (TZOO) at a $529 million market cap. Travelzoo had revenue of $11.2 million and profit of $1.8 million last quarter. If LONG can reach these kind of numbers, it would not be hard to imagine their market cap eclipsing $500 million especially with their China appeal.
There are only 7.20 million LONG shares listed.
SpeculatingStocks.com Target Price: We expect LONG to reach $30 within the next 6-12 months, possible strong upside surprises.