China Finance Online rises on Hong Kong brokerage acquisition
China Finance Online Co. (Nasdaq: JRJC) shares are rising after the provider of online financial and company data completed its acquisition of an 85% stake in Hong Kong-based brokerage firm Daily Growth Investment Co. Ltd. for $3 million. Under the terms of the agreement, China Finance has the right to buy the remaining 15% stake within five years.
Alex Xu, an analyst for investment bank Brean Murray, Carret & Co. who covers China Finance, said it was a strategic acquisition.
“It won’t have a meaningful impact in terms of numbers for this year and next year,” Xu said.
Xu said he is maintaining his price target of $50 and a rating of “buy” on China Finance.
In afternoon trading, JRJC shares are up 22.19%, or $3.77, at $20.76. Over the last 52 weeks, shares have ranged from $3.95 to $47.68.
