Internet Information Providers Industry

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Name & Fund Name: Junxi Nie ---- Market Mafia
Date of Analysis: Jan. 12. 2014
This analysis led to the following trade(s) executed on (date):
Trade Date Price Quantity
1.
Industry Description
Firms in Internet Information Provider industry generate their sales primarily through families of their sites. This industry excludes e-commerce companies (such as eBay, Amazon) as well as Internet software firms (like Oracle and Microsoft) or firms that otherwise are generally firm rather than consumer facing. Companies that are part of this industry specialize in creating or aggregating interesting and useful contents that attracting eye-balls to their site. And most of those informations are free.
Thus, those firms depend on their loyal and existing customers and widespread brand recognition to attract advertisers. Advertisers buy advertising space on their site or embed advertising. The firms reinvest their profit on enhancing their websites and improving their content offerings to attract more viewers then resell the eyeballs they attracted to advertisers.
Business cycle and Opportunities of the industry:
Below is a list that contains the leaders of market capital in this industry. You may note that there are some very large Chinese companies in Chinese market and some of them are listed on US stock exchange. Therefore, to better analysis the industry, we need to consider China and US economic data at the same time.
Leaders in Market Capitalization [1]
TENCENT [0700.HK] $913.8 B
BAIDU SP ADR-A [BIDUN.MX] $816.8 B
YAHOO [YHOO.MX] $541.1 B
Google Inc. [GOOG] $377.6 B
Facebook, Inc. [FB] $142.2 B
MONEYSUPERMARKET [MONY.L] $107.9 B
TENCENT HLDGS [NNNC.DE] $87.8 B
Baidu, Inc. [BIDU] $62.9 B
Fi...

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...ders industry is quit high compare to our portfolio return of 3.28%. The percentage of our total asset that has invested in this industry is around 24%. Base on the weight of each stock, the weight average return of stocks from internet information providers industry is 9.36%.
The return from IIP industry is much higher than our portfolio return, and base on all the other industry analysis, I recommend to sell some underperformed stocks in our portfolio and invest the money in good stocks in internet information providers industry, like YOKU and SOHO.

List data sources:
[1] Leaders in Market Capitalization http://biz.yahoo.com/ic/ll/851per.html [2] Internet Users http://en.wikipedia.org/wiki/Global_Internet_usage http://en.wikipedia.org/wiki/List_of_countries_by_number_of_Internet_users
[3] Industry and Sector Data
http://biz.yahoo.com/p/851conameu.html

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