Is 51job, Inc. (ADR) (JOBS) A Good Stock To Buy?

As industrywide interest jumped, specific money managers were leading the bulls’ herd. Fisher Asset Management, led by Ken Fisher, initiated the biggest position in 51job, Inc. (ADR) (NASDAQ:JOBS). Fisher Asset Management had $2.4 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $1.7 million position during the quarter. The only other fund with a new position in the stock is Cliff Asness’s AQR Capital Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as 51job, Inc. (ADR) (NASDAQ:JOBS) but similarly valued. These stocks are Argan, Inc. (NYSEAMEX:AGX), FelCor Lodging Trust Incorporated (NYSE:FCH), Cavco Industries, Inc. (NASDAQ:CVCO), and Eros International plc (NYSE:EROS). All of these stocks’ market caps resemble JOBS’s market cap.

As you can see these stocks had an average of 13.75 hedge funds with bullish positions and the average amount invested in these stocks was $109 million. That figure was $27 million in JOBS’s case. Argan, Inc. (NYSEAMEX:AGX) is the most popular stock in this table. On the other hand Eros International plc (NYSE:EROS) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks 51job, Inc. (ADR) (NASDAQ:JOBS) is even less popular than EROS. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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