Reaction Radio

Dan Wieman submits:

Similar to my recent post on Apple (AAPL), I have to wonder if Ctrip (CTRP) is worth selling. The stock hit a new 52-week high yesterday, and appears to be selling at quite a premium. The stock trades at over 62x trailing twelve-month earnings. This looks rich even for a company that continues to grow at over a 25% year-over-year rate.

In its most recent quarter, net revenues grew by 27% on a year-over-year basis. Including the effects of share-based compensation, net earnings were up 23% on a year-over-year basis. In its outlook, Ctrip projects 25% growth for its third quarter. This projection is likely conservative as management tends to deliver higher growth than forecast.

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