New Chinese IPO to Look At

bita ipo
With all the hype of the recent GM IPO after their short vacation away from Wall Street while in bankruptcy, I believe this Chinese IPO has been overlooked.

China is the largest customer for vehicle purchases and their number one source to purchase vehicles are through online vendors. Last year, online vendors attracted 140 million unique visitors, which was up from 29 million in 2005. Bitauto (BITA) is the largest online vendor that services vehicle information in China. On Wednesday, Bitauto issued 10.6 million shares to the NASDAQ for $12 per share.

Since going public, there has been some downward pressure on the stock price and volume has remained relatively low.

As with many Chinese public stocks, BITA carries risk. It has a higher forward multiple, which is typical for Chinese companies. Due to the recent release of shares, their market cap has been put to $492 million. Once this company gets some more exposure, I would not be surprised to see some strong, positive movement.

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  1. Penny Stock Investments Says:

    Chinese stocks are bargains.


    Chinese stocks look very attractive.