NEW YORK (TheStreet) -- Shares of ChinaNet Online Holdings (CNET) were gaining 48.6% to $1.56 Monday after the Chinese advertising agency announced a new partnership with cloud print services company MediaFun Creative.
Under the new agreement, ChinaNet will use its experience with small and medium-sized businesses to help MediaFun expand its sales marketing to new cities through mobile and the Internet. The Taiwan-based MediaFun will share its print services in China under the agreement.
The two companies said they plan to share in profits and commissions under a joint venture agreement.
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"This cooperative agreement continues our ongoing efforts to expand our marketing and related value-added services for our clients," ChinaNet COO George Chu said in a statement. "We in turn look forward to utilizing our deep experience in franchising and the China market to help MediaFun expand its business opportunities."
TheStreet Ratings team rates CHINANET ONLINE HOLDINGS as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHINANET ONLINE HOLDINGS (CNET) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow."