There is a growing economy in China and as business travel and the middle/upper class begin to vacation travel Ctrip.com International (CTRP) may be the beneficiary of the new found Chinese discretionary income. They book hotel and airline reservation not only within China but they are also expanding into select international markets. The last 5 years has been kind to investors in this stock as this Barchart provided graph of the last 5 years shows. Investors that bought in at the low in November of 2008 saw their investment return 208% by November of 2010.
- Barchart indicators are based on technical analysis of price momentum between 7 days and 6 months. Short term weakness in fundamentally strong companies can signal buying opportunities
- 72% Barchart overall technical sell signal that is weakening its sell indicators
- Trend Spotter sell signal which is trending toward a hold soon
- Below its 20, 50 and 100 day moving averages
- Although the stock is 34.67% off its one year high it has gained 8.02% in the last 5 trading sessions
- Relative Strength Index is 46.15% and rising
- Barchart computes a technical support level at 32.61
- Recently traded at 33.90 with a 50 day moving average of 38.03
Summary: Ctrip.com International (CTRP) at the present time has a P/E ration more than 2 1/4 times the P/E of the overall market. If you already own this stock or choose to enter into a new position at this price please continue to hold with the appropriate moving stop losses to protect those profits you've already seen.
Jim Van Meerten is a Marketocracy Master
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