Linktone Near Bottom of Trough

We maintain our Hold recommendation and the same valuation target for Linktone Ltd. (ADR) (LTON - Analyst Report), a leading provider of wireless value-added services (WVAS) in China, ahead of third quarter financial results.

The Chinese wireless value-added services market is experiencing intense competition and policy/regulatory changes are materially impacting Linktone's business. However, market opportunities remain attractive arising from the launch of 3G wireless services, along with mobile television and flash media products and services in China.

With respect to several valuation metrics, the stock is currently trading at an attractive level for investment consideration, albeit for a longer time horizon. We maintain our Hold rating and the same valuation target of $2, based on 1x cash/share or 0.63x P/S to our fiscal 2008 sales estimates.

Read the full analyst report on LTON.

Read the full analyst report on LTON