51job Shares Jumped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Just as U.S. recruiters were surging, shares of Chinese job-search site 51job (NAS: JOBS) closed up 9% after a 12% initial surge in early trading. Volume was lighter than average, suggesting an abundance of buy orders versus few sells.
So what: The buying makes sense. Both Chinese and outside firms are hiring the region. Germany's SAP (NYS: SAP) last week announced plans to invest $2 billion in China, bringing "thousands of jobs" to the Sino superpower between now and 2015.
Now what: SAP isn't alone; 51job booked 49% growth in online recruitment in its most recent quarter. Adjusted earnings grew 55% to $0.59 over the same period -- six cents more than analysts were calling for. Does it matter? Would you buy shares of 51job at current prices? Please weigh in using the comments box below.
Interested in more information about 51job? Add it to your watchlist.
At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Motley Fool newsletter serviceshave recommended buying shares of 51job. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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