To think that QIHU is going to be the only company in the internet sector in China to escape rising costs and a slowing economy is a foolish assumption. The stock is (1) near its projected 1 year target price and (2) has doubled in six months. It is overbought and overextended here.
It is safe to assume that the price will be lower next week from today's high.
What you fail to put in your model is their massive stealing of Bidu's internet marketshare. 10% in a matter of flipping the switch. Wont take much to take 20% and dont forget google getting tossed out of China and Qihoo getting Googles add revenue.
Don't be so sure about that. Sometimes it's prudent to buy it high and then sell it higher! A double in six months does not usually mean overbought. JMO.
I did take some profits today at 31.89 and will be waiting again for the right time to jump back in