I think there is nothing specific.  What people are betting on is that
alibaba is going to come at 1.5 - 2.0 billion, which would price it
around $50 per share.  So if alibaba is worth $50/share, then Nine
should at least be worth $10+ per share, on a comparison basis.  I
think it could end up adquiring it even.  Also the Fed cut should
raise the dow back to 14,000, and earnings might be a little bit
higher.  Its all expectations really, this stock on a NPV valuation is
worth about $3...but at this point it could go to $10

Fed Rate cut Oct 31
Alibaba IPO Nov 6
Earnings Release: Nov 15

Alibaba IPO is on Nov 6

The price is settling around $5.85 - $5.95 at this point.  I believe
that the fed will most likely make a .25 bp cut on Oct 31.  This will
in turn devaluate the dollar, cause a market rally possibly to a
record high beyond the 14,000 resistance in the DJ and serve to ease
the underlying credit crisis.  This will in turn translate to a
greater confidence in the Asian markets who are primarly exporters of
goods to the US....and lead to a rally there as well..might see a Hang
Seng of 13,000 and a high Shanghai as well.

What this company essentially does is streamline exports/imports in
the PRC, via the internet.  So, the general trend of the technology/
communications markets will affect the direction of NINE.  Once the
fears ease a little bit, people will try to take advantage of
attractively priced techs and financials.

So Given the sum of factors:

- Devaluated dollar: exports
- Regain in confidence; Investment in riskier assets
- Ripple effect in Asian Markets: Exports, Investments
- Relative decent valuation in respect to other Chinese Stocks in the
same sector:
  JRJC P/E = 673
  BIDU P/E = 200
  PWRD P/E = 760
  NINE = 94.2
- Good business niche
- Strong Technicals.

I believe that we havent seen the best of Nine yet, there might be
another doubling coming before years end.

regards,

Oz

this article is interesting:
http://seekingalpha.com/article/49580-keeping-ninetowns-on-the-radar-...

NINE
-------

October:      $5.57
November:   $6.77
December:   $6.36

I agree.   A lot of people decided it was a good time to collect 50%
of their gains from the rally which went from 3.5 to 7.2 at the top,
that gives a midpoint of  5.37.  The stock has been oscillating
between 5.17 when tons of people jump in and buy, and 6.05 when a lot
of late comers either bail out or cash in some of the profits.  My
guess is that this stock will continue to oscillate between 5.2 and
5.5 for a couple of weeks and then it will start to trend up.

The alibaba IPO should help.  I think it is good that eventhough the
american markets have been tanking for the last week, the stock was
able to hold its resistance...which gives, that if things were to get
better, then the stock should start do better as well.   Earnings
wise, nine has been kinda a dissapointing, this is definetively an
"expectations" stock, because valuation gives a $3.5 price.   Also
there is concern of overvaluation in chinese stocks... JRJC for
example was trading at 900 P/E....insane.

I am confident the Fed will step up and not let the markets eat it,
then the holidays is a good season for exports, expectations improve,
etc.  For December, the options are placing bets around $7.5.
Averaging optimists and pessimists, I would expect to see at least a
$6.5 by years end.

Is it all but psychological for the market to tumble today? Most
likely: yes.
Investors knew the earnings weren't that good (with the exception of
GOOG, of course), but overreacted with selloffs.
I think this opens wide the door opportunity to enter the market on
the dip.
NINE is a bargain.

i like 9.. i feel that it will be the next pump up by the china force
workin on  these stocks..