TOM Online "Overweight"

neuer Thread, da der alte vom Header nur auf ebay beschränkt war, was aufgrund der breiten Fokussierung der Firma (ISP, VoIP-Service, Mobilfunk, Ebay u.a.) eindeutig zu kurz zielt.


Nachdem es längere Zeit ruhig um die Firma gewesen war und die Aktie auch deutlich nachgab, reißen die bullishen Nachrichten rund um diesen chinesischen Internetserviceprovider nicht mehr ab.

1. Zuerst die Übernahme des Ebay-Geschäftes in China in einem gemeinsamen Joint-Venture, an dem TOMO für einen vergleichweise geringen Betrag von 10 Mio. USD die Mehrheit bekam.

2. Die Einstufung als "e-commerce-Firma des jahres 2007" durch Mootley Fool

3. Das aktuelle Overweight-Rating durch Morgan Stanley, siehe nachstehend

Die Zusammenarbeit mit ebay schafft, so die Bank, für beide Parteien eine win-win-Situation in einer der am stärksten wachsenden Volkswirtschaften der Erde.
Dies ist zwar keine neue Erkenntnis. Jedoch dürfte das neue Rating dem Kurs wieder auf die Sprünge helfen.


Surprised not to see the following post:
17 Jan
BEIJING (XFN-ASIA) - Morgan Stanley has kept its rating on Tom Online (TOM) at 'overweight', supported by the firm's recent move to form a joint venture with eBay for an online auction service in China.

21 Dec
BEIJING (XFN-ASIA) - Morgan Stanley said it is maintaining its ""overweight-v"" rating on TOM Online after the company announced it is forming a joint venture with eBay, for an online auction service in China.

The deal will see eBay injecting its wholly-owned Eachnet subsidiary and 40 mln usd into the new venture.

In a research note, Morgan Stanley said the venture, in which TOM Online will hold a 51 pct stake, may result in a ""win-win"" scenario for both companies, given their strong positions in the sector.

This comes as good news to two of China's largest mobile providers: China Mobile (NYSE: CHL) and China Unicom (NYSE: CHU). Both companies contribute considerably to TOM Online's mobile exposure and revenue stream; 94% of TOM Online's revenues stem from wireless Internet services.

Aligning with China Mobile -- China's No. 1 mobile phone provider, controlling about 65% of the market -- will make sure the dollars (or renminbi) keep rolling in. Recently, China Mobile tapped TOM Online to operate the music and automobile channels on China Mobile's web portal.

The key ingredient
But TOM Online has an even bigger calalyst to capture the e-commerce market in 2007: a partnership with eBay (Nasdaq: EBAY) to create a new Chinese marketplace. eBay and other Internet companies have struggled to gain an edge in the Chinese online auction market. The U.S. auction giant's decision to partner with a local presence -- gaining exposure to TOM Online's subscriber base of more than 75 million -- is a smart move. This collaboration will create opportunities on both ends, combining eBay's e-commerce expertise with TOM Online's mobile positioning and knowledge of China.

The Foolish bottom line
Despite its shining prospects, TOM Online has endured some gloomy quarters. Still, the picture remains bright; as of September 2006, the company sported a 30% compounded growth rate over the trailing 24 months. Its current trailing P/E of 18 compares favorably to Chinese competitors Sohu.com (Nasdaq: SOHU), Sina (Nasdaq: SINA), and Baidu.com (Nasdaq: BIDU), which post P/E ratios of 34, 48, and a whopping 168, respectively.

True, the company will need to make changes to remain China's No. 1 provider of wireless services. Its new joint venture with eBay, and its recent agreement with China Mobile, should help to reinvigorate the company, pumping some nice profits back into TOM Online.

The Foolish community also stands behind the company, giving TOM Online a four-star rating in Motley Fool CAPS, our new stock-rating database. To share your opinion on TOM Online's chances as the best e-commerce stock for 2007, sign up here, absolutely free. Based on your responses, we'll crown "The Best E-Commerce Stock for 2007" early next week.

See all our Foolish candidates for 2007's best e-commerce stock, then add your own ratings in Motley Fool CAPS.

TOM Online, eBay, and SINA are all Motley Fool Stock Advisor recommendations. Baidu.com is a Motley Fool Rule Breakers pick. Try any of our Foolish newsletters free for 30 days.

Foolish research associate Katrina Chan owns no shares in any of the companies mentioned, but she did purchase something from eBay in the past month. The Motley Fool's disclosure policy is internationally friendly.