e-Future Information Technology Inc. (NASDAQ:EFUT) is seeing shares post huge gains this morning on active volume after announcing that Beijing Tourism Group ("BTG") has licensed e-Future ONE VPM (Visual Process Management) Solution to centralize purchasing and optimize business processes of its selected business segments. Financial terms are not disclosed, go figure.
BTG is a collection of the greatest number of famous brands in China and has established six major business segments: Hotels, Scenic Spots, Shopping, Dining and Cuisines, Automobile Services, and Travel & Tours. BTG is one of China’s largest tourism groups in hotels, travel services, automobiles, shopping, dining and cuisines, MICE, entertainment and scenic spots business.
Shares are up big as traders continue hunger for anything-China again. The stock EFUT is up 40% on now over 2 million shares at $26.70, and shares have traded in a $24.42 to $28.38 range today and $10.52 to $49.90 range over the last year. This is one of those hi-flyers from the end of 2006 that had seen shares in a steady staircase down all year until mid-September.
When you look at the scope of the e-Future clients already, you’ll wonder if this stock jump is more hype than Dollars (or Renminbi). e-Future claims it is now serving more than 800 clients, including over 500 retailers and over 200 distributors and Fortune 500 companies that do business in China: Procter & Gamble, Johnson & Johnson, Kimberly-Clark, the Chang’an Motors and Ford Motors joint venture, B&Q- Kingfisher China, GUCCI China, Aeon-JUSCO China, PARKSON China, SOGO China and Mickey’s Space stores (Disney franchises), Belle, Lianhua, Suning, Wuhan Zhongbai, Wushang Group, Bubugao, Yonghui and China Duty-Free Stores.
China may be the hottest thing going and the market may have exponential upside. But a massive jump like this is traders chasing stocks up. This has been seen over and over.
Jon C. Ogg
October 3, 2007