E House China Holdings Ltd

This is a stock that we are looking to add to our covered call portfolio. The thing to remember about China stocks is that there is a greater volitility involved. They can be good covered call candidates, however we choose to always use the hedge wrap on China/foreign stocks to guard against increased volitility. The financial fundamentals do not look as strong for this stock as the previous stocks we have talked about, but it has a strong recommendation from several analyst and looks to be a good candidate as a hedge wrap. There is always a risk associated with investing. Please do not invest money that you cannot afford to loose.



E-House (China) Holdings Limited (E-House), through its subsidiaries, is engaged in providing real estate agency and brokerage services in the primary and secondary markets and real estate consulting and information services in the PeopleGÇÖs Republic of China. The Company sold an aggregate of approximately five million square meters of primary properties. It operates through a network of over 1,800 real estate sales professionals in 20 cities throughout China. E-HouseGÇÖs service offerings are enhanced by its real estate information database and analysis system, which the Company refers to as China Real Estate Information Circle system (CRIC system), which is an information system that provides up-to-date and in-depth information covering residential and commercial real estate properties in all regions in China. It provides three principal types of services: primary real estate agency services, secondary real estate brokerage services, and real estate consulting and information services.

E House China Holdings Ltd: Stock Rating Detail
3
The grades below summarize the effects of key business and trading trends on this stock. FundamentalGrade: B
• The most recent quarterly earnings report was significantly higher than analysts’ consensus forecast. Positive
• Earnings growth information is unavailable or inconsistent.
• Earnings estimate revision information is unavailable or inconsistent.

OwnershipGrade: NA
• Insider trading information is unavailable or inconsistent.
• Institutional holdings information is unavailable or inconsistent.

ValuationGrade: F
• The price-to-earnings multiple is higher than the average for all stocks in the StockScouter universe. Negative
• Price-to-sales information is unavailable or inconsistent.
• The ratio of EJ's price-to-earnings multiple to its five-year growth rate is unavailable or inconsistent.
E House China Holdings Ltd: Analyst Ratings
Average brokerage recommendation is Strong Buy.

Trades:
Purchase stock at $16.60
Sell March call at 2.25
13.5% return in 43 days

Hedge Wrap
Same as above plus buy March put at 12.50
7.5% return in 43 days

Good investing!