Looking to get into a rockstar China play? Look no further. Right now you can make big money in the booming market with a Chinese company that is planted right in the heart of Hong Kong

CDC Corp. (CHINA: NASDAQ) operates in China, Asia-Pacific, Europe, and the Americas and is heavily involved in the Internet, media, software, and gaming industries.

The China.com, Inc. unit provides mobile services and applications, online entertainment, direct marketing, and Internet products and services.

Technicals:

CDC News:
·06/12/07 - HONG KONG & ATLANTA–(BUSINESS WIRE)–CDC Corporation (NASDAQ: CHINA - News), a leading Global Enterprise Software and New Media Company, today announced that it is opening a new development center in Nanjing, China that will house more than 2,000 employees when fully staffed.

·06/05/07 – First quarter adjusted net income was $9.85 million, or 7.5 cents a share with revenue up 41% to $91.3 million. CDC’s net income was $209,000 during the quarter. Analysts expected earnings to come in at only 7 cents a share.

·05/29/07 - CDC’s China.com in advertising pacts with Google, China Mobile - Under an agreement signed last July, Google, Mountain View, Calif., is providing its search-engine technology to enable users in greater China to search English and Chinese content on China.com. With the expanded agreement, Google will advertise on China.com and explore new opportunities with the Beijing company.

Under the expanded agreement with China Mobile, the Chinese mobile operator will place video ads on China.com to promote its products and services to business professionals, its core user base.

“Our goal is to achieve a robust rate of growth in advertising that will equal or exceed industry projections for overall growth of 30% to 35% in online advertising this year in China,” -China.com.

Furthermore, analysts see this stock easily climbing to $14, which would equate to a 61% gain!

CDC is currently experiencing rapid growth in their software and gaming units. The Software unit makes up about 80 percent of the company’s revenue and is posting organic growth of about 15 to 20 percent year-over-year

Companies in this industry such as Oracle, SAP, and Infosys technologies have seen 150%, 400%, and 500% cumulative returns over the past 5 years. In relation to other large players, once tiny CDC gains traction in China and abroad, we could easily see similar market moves!

On a grand scale, CDC may be a small global player here, but the way Oracle (Nasdaq: ORCL) keeps snapping up growing enterprise-software entities, who knows whether CDC will one day become buyout bait. Maybe Electronic Arts will push for access into the company’s gaming unit. Source: Motley Fool

Another contributor to the rise of CDC’s share price could be speculation that the company might spin off its software business soon.

“I think it’s in the near future, and I think it’s a potential catalyst for the stock, as it should unlock shareholder value” – Analyst, Derrick Wood

Looking forward, CDC Corp expects revenue in 2007 to show a 37% increase to a range of $415m to $420m, well above the guidance of $401m to $411m it gave last November.

Our Recommendation: Buy shares of CHINA at or near $8.33. Place a 10% stop loss.

Good Investing…