New ETF Book by Larry Connors - Click here to read more
Presently, Monster Worldwide (Monster.com) holds 45% shares in ChinaHR.com including a 40% stake acquired at a cost of USD 50 million in early 2005, when the Chinese part promises to sell the other shares in itself to Monster.com, if it could not realize a listing in about three years.
Although the global capital market is in a period of uncertainties, ChinaHR.com still hopes to finish the establishment of its IPO plan before the end of the year, said the president Zhang Jianguo on September 16. But from analysts' points of view, the prospect of the IPO is somewhat gloomy due to problems in its profitability.
In 2007, 495 million students graduated from colleges and universities in China. Among them, 1.44 million had not been employed by September 1 of the year. And the number of new graduates in 2008 is estimated to have reached 5.59 million, large part of which have become the consumers of job searching websites.
However, ChinaHR.com, like other big employment solution providers in China, mainly serves employers by making and publishing ads, which contain company profiles, positions, and e-mails. And such information can be shared by job seekers for free.
Under the business model, the websites' revenue is largely decided by the demand for employees, which has been squeezed to a certain extent, due to a slowing growth in the Chinese economy.
Besides, it is costly for such websites to promote the cognition of their brands. As a demonstration, ChinaHR.com plans to spend CNY 150 million on ads for itself, compared to a revenue of CNY 281 million from its main business in 2007, when it suffered an assessed loss of CNY 150 million, in the light of Monster.com's financial statements for the year.
Moreover, these websites are facing the challenge from an increasing number of small-sized competitors, which are more professional and localized with less cost, according to Mr. Zhang.
Monster.com's financial report for the second quarter of 2008 said that its investment in China hit a loss of USD 3.8 million. On the basis of the statement, the loss in ChinaHR.com should have reached about USD 8 million in the period.
The same report disclosed that Monster.com planned to finish the merge over the Chinese website in the near future. And insiders believed that there would be few changes in the plan, because ChinaHR.com's profitability was not likely to be remarkably enhanced in a short period.
But Mr. Zhang said that the prospect of his company would not be clear until the end of 2008.
From www.hexun.com, Page 1, Wednesday, September 17, 2008 info@SinoCast.com
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
