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Sohu.com (SOHU) Continues Growing at Solid Pace
By: TraderMark   Monday, February 16, 2009 10:31 AM

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With all the government interventions and general hysteria last week, there was not a lot of time to get to a bevy of earnings announcements. I'll try to put some interesting names still showing some solid growth metrics in a horrid global economy up on the site early this week - this pathetic market has all been about government this, government that - game the CNBC news announcement here, or sell the Washington D.C. link there. There used to be a time when companies & their metrics actually mattered. We'll throw a smattering of "old school" company specific matters up during this break in the action.

First up is Chinese gaming/portal/search company Sohu.com (SOHU). Price wise the stock is just about exactly the same spot it was during it's last earnings release (Oct 27, 2008: Sohu.com Quadruples Profit, Raises Guidance, Announces Share Buyback... and gets a 4% Pop) - for now $50 appears to be a ceiling. I'm not so concerned about the ad revenue drop since Q3 2008 was huge due to Sohu.com's prominence in Olympic sponsorship. The company is debt free with a nice cash balance...

Sohu.com still can't attract much interest since most of the "investing" nowdays is flocking to hot money trades that last 2-5 days, based on "thesis" and then exiting to the greater fool. However, one of my favorite mutual fund managers - Will Danoff of Fidelity Contrafund (FCNTX) is the largest fund owner of this company. (Sep 9: Will Danoff in Kiplinger's Magazine) I continue to like Perfect World (PWRD) in the pure play gaming side - but the stock has done nothing for a long time - so until it shows signs of life that last longer than 5-6 days we are not involved.

Via Investor's Business Daily
  • China's No. 1 Web portal, Sohu, on Monday reported fourth-quarter profit that handily beat analyst views, but its sales outlook this quarter lagged views amid slowing online ad sales and slower growth in games.

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The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.
  
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