Tech Buzz | Adobe (ADBE), China Information Technology (CNIT), Vipshop (VIPS)


Adobe Systems Incorporated (NASDAQ: ADBE)

Shares of ADBE closed higher in yesterday’s session by 3.25%, or $2.58 at $82.28 after the company was upgraded by Argus, a Wall Street research firm. Argus reiterated their Buy rating and raised the price target to $95 from $85 predominantly in result from the strong Q2 results reported last week.

ADBE is making the shift to an annualized recurring revenue (ARR) model by implementing a subscription based business which has proved to be the right move as it has grown the ARR by nearly 10 times in Q2. Comprised of annual subscribers to the ADBE cloud based system, the ARR has infinite room to grow which makes the outlook for an investment in ADBE that much better.

Adobe Systems Incorporated is a diversified software company worldwide. It operates in three segments: Digital Media, Digital Marketing, and Print and Publishing. The Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content. Yahoo! Finance


China Information Technology, Inc (NASDAQ: CNIT)

Yesterday, CNIT announced that it had received a preliminary, non binding proposal of going private. CNIT moved higher by 11% to $3.73 following the Chairman’s proposal to buy out the existing shareholders for $4.43/share, nearly a 20% premium over Monday’s closing price.

Investors must bear in mind that this is simply a proposal and as of yet nothing is definitive, agreed upon, nor executed.

CNIT is yet another M&A story on a U.S. listed Chinese company to go private. Year to date, a record breaking $23 billion dollars in buyout offers have originated from the Chinese markets.

China Information Technology, Inc. operates as an Internet service company that provides cloud-based platform, exchange, and big data solutions enabling innovation and smart living in the education, healthcare, new media, finance, and transportation sectors in the People’s Republic of China. Yahoo! Finance

Low cost trades, higher leverage

Vipshop Holdings Limited (NYSE: VIPS)

VIPS has been surrounded with controversy as of late related to manipulation and misrepresentation of its financial results after a scathing report issued by Mithra Research and shares of VIPS have been under pressure recently on these concerns along with the company’s future growth and the ability to sustain it.

However, there have been a handful of different reviews surface speaking to the longer term potential VIPS may have.

On Monday, VIPS received a Buy rating from Summit Research and reiterated their price target of $35, over 50% higher today’s share price. The analyst behind the call, Henry Guo noted,

 “We don’t believe the growth deceleration is due to competition or market share loss – there might be some flash sales competitors in the China B2C space, but we believe Vipshop is the dominant player in the China discount retailing market, a space where we don’t see any meaningful competitors can really match Vipshop’s merchandising capability and large scale.”

In Mr. Guo’s statement he clearly points out VIPS authority in the China’s market and looks at the current situation as providing an opportunity to buy into a longer term growth story.
Vipshop Holdings Limited, through its subsidiaries, operates as an online discount retailer for various brands in the People’s Republic of China. It offers a range of branded products, including women’s apparel, such as casual wear, jeans, dresses, outerwear, swimsuits, lingerie, pajamas, and maternity clothes; men’s apparel comprising casual and smart-casual T-shirts, polo shirts, jackets, pants, and underwear; women and men shoes for casual and formal occasions; and accessories consisting of belts, jewelry, watches, and glasses for women and men.  Yahoo! Finance