Wednesday, November 24, 2010

China Sports Int’l

China Sports Int’l: unchg at $0.11. FIFA has terminated the FIFA licensing and marketing rights previously granted to China Sports, with immediate effect. Seems like China Sport was unable to grow the new segment quickly enough, as sales of FIFA related pdts only accounted for 1% of Group sales for 9M10. News likely a dampener, as it removes a potential area of growth for the firm.
Despite lack of catalyst, stock trades at 7.5x trailing P/E, vs peer Eratat at 3.7x.

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