CTrip (CTRP) reported last night. At first glance, the EPS looked strong and the revenues came in above expectations. This company used GAAP, so at first the numbers appears to be a miss – in fact they beat nicely. Even so, the stock gapped down at the open by 10%, then came back to about 5% down as the numbers were digested.
The fact that it was a sell-off day for the markets did not help. In addition, there was some word that a some money was invested in a potential company that is involved in the travel business withing China. That was eventually substantiated to be eLong. (That stock is up close to 50% today).
There is an interesting disparity in the price of the stock and what might be the potential, considering the previous EPS and revenue beats.
(Remember that fundamentals are only part of the story, the technical action will override of course).
