Does anyone have any insight on EJ (E House China Holdings)? Buy, hold, sell???

CUWu answered one year ago …

Seems like an ok company but it could go to 13 before it goes back to 28 - it's definitely in a solid downward trend.

The thing that worries me about this company is that its cash flows are so erratic. One year it's got huge positive cash flows, the next they're back in the red. Hard to gauge whether or not they have a sustainable business there. The lack of publicly traded competitors also makes this a tough sell for me. It might pay to call up some folks you know who have a presence in China and see what the best way to buy a home there is.

A lot of china's economy is based on what's known as "guan xi" or "relationships"...people tend to do business with who they know, not necessarily the company with a big name (especially when it comes to buying a home - a first for many Chinese). So while this might be a great long term hold, the maturing of the industry might take longer than expected. You might be better off putting the money to use in an industry that's already mature and yet still growing - wireless comes to mind.

But again, this is only after doing more research.