Posted on 1 Comment

Home Inns is Getting Expensive

Reading Time: < 1 minute

I mean the stocks, not the motel price. It’s being mentioned by IBD (Investors Business Daily) as No. 1 stock this Monday. IBD publishes 100 stocks every Monday based on its own rating system. Because a lot institutional investors trade stocks based on the IBD (whether there is merits or not is another story), the stock went up again today to $47.

A little background about IBD: IBD was founded by a savvy a stockbroker and writer named William J. O’neil. Here is an introduction about William on wikipedia. He also wrote some books such as “How to make money in stocks”. At one time I took very seriously on IBD’s rating system, but not now. I remember once a friend told me he found the “holy grail” of the stocks: IBD and William O’neal’s books. By the way, I told him at the time I liked to buy Google at about 160 (November 2004), he said “No”.

My point is: I like to read books, newspapers and magazines, listen to radio, or watch TV, but I won’t take all these blindly.      

Posted on Leave a comment

Home Inns IPO Date

Reading Time: < 1 minute

I could not find the offical date for the IPO date. The only thing official is it will debut this week. Since now it’s 12:50 PM Eastern Time, I don’t think it will go out today. That means we only have 2 days left.

Sohu has an aritlcle which did mention it will go on Oct 26 evening Beijing time. But it also says it’s the Oct 25 US day time. So go figure.

Also, the yahoo Finance is up for “HMIN”, although there is no content.

Incidentally, the World Series game 4 is rained out today. My sympathy to those people who paid “pretty penny” for the tickets. I heard the tickets start from $500 on the market.

PS, according to Sohu, the price for Home Inns share is $13.80 and it will go out Oct 26. This thing is as intense as  the baseball World Series 🙂  

Posted on Leave a comment

Bubble is building

Reading Time: < 1 minute

Home Inns (Rujia, ticker symbol HMIN), which is due to IPO this week, is getting $ 1.0 billion orders for its $ 95 million listing (7.9 million shares in the range of $ 10 to 12, with over allocatement option of 1.185 million shares). See the article from Reuters here. Does anyone has the order vs. offering ratio (a.k.a. supply vs demand) for Baidu (BIDU)?  

As of now I still don’t know the exact date of its IPO. But I saw this lastest SEC filings. From most sources it appears Oct 25 Wed is the debut date.

If you know Chinese, here is the coverage from Sohu.

rujia home inns

Posted on Leave a comment

Analysis of Home Inn and Jin Jiang

Reading Time: < 1 minute

I saw this Chinese article about Home Inn and Jin Jiang. The author obviously did a good job here. For those who can not read Chinese, Jin Jiang Star is a competitor of Home Inn (Ru Jia). Jin Jiang Group started this economy hotel chain in 1997 (note Ru Jia started in 2002). From Home Inn’s F-1 Form, I saw Jin Jiang, Home Inn and Motel 168 had 20%, 18% and 16% of the China economy hotel market share, respectively. I stayed at both the Xing Ya Star (2002) and Jin Jiang Star (2004), and they are both comfortable.

It’s interesting to see, although Jin Jiang is the “first mover” in China’s economy hotel market, and they have lots of experience in the industry, they are not the dorminant position or even No. 1 brand. One reason it grew from the Jin Jiang group, whose main focus is the high end market. I think they are serious about this segment now since Home Inn is doing the IPO.

By the way, you can see Home Inn’s road show video from IPO home.