NetEase.com Inc., the China-based Internet and online games service provider, said Friday its board approved the repurchase of up to $100 million of its U.S.-listed shares over the next year.

The company recently completed buying $46.4 million in shares under a program started in July 2007.

A company typically buys its own shares when it thinks the market is undervaluing the stock.

The stock trades for 8x cash flow.

pot3ential

Netease.Com ( NTES ) is a provider of an interactive online and wireless community. The stock has a P/E of 16.79 and a PEG of 1.02.

This stock fits all of our criteria. Its also a Chinese online gaming company (like SNDA). The company has $438 million in net cash. So with a $2.2 billion market cap and $200 million in cash flow they only trade at nine times cash flows. Analysts expect earnings to go from 1.15 earnings per share in 2007 to 1.23 earnings per share in 2008. Have analysts been correct in the past? Not really. NTES beat analyst expectations the past four quarters in a row. If they beat again in 2008 then they have a forward P/E of 13 or even lower. NTES is first on my list of Chinese Rocket Stocks.

NTES is on an interesting portfolio of the companies of young billionaires.

7.3.07 price = $18.17
9.25.07 price = $17.49

china

ASIAN AND GAMBLING IS SYNONOMOUS

hopefully will do extremely well, all comes down to Tian Xia

China games. I think I have too many games, I know. I have a tiny spec position on the theory that a few specs are better than none. Ouch. Bad humor and bad quarter.

very active

I am short and the recent earnings report was bullish

looking at options

China online game revs decline.