Today I am giving this junk company an honor to be compared with GOOGLE. Google is a world first class company with huge R&D and talents while QIHU is a piece of s*! Google is traded at only a p/e of 20, with the e of this year 2014! Assume that analyst was correct by predicting $5/share for QIHU by 2016. By that time two years later, a p/e of 20 -- google's of this year -- should be appropriate. But we have to discount the valuation because of the incomparable quality of the two companies. A 20% discount would put p/e of 16. The target price by 2016 is then 16 * $5 = $80/share. Given the risks, applying 15% discount rate for each of the next two years would put the prevent stock value at $80/(1.15 * 1.15) = $60.50.
These guys are so wrong..look at them, the downgraded GMCR. And it is uo $12. They upgraded SPLK and it is down almost $4. Motley said over 80% of them are inaccurate.
Jim Roger said buy Chinese stocks..read front page yahoo. He is extremely well known for picking bottom...
QIHU will go up much much higher..all manipulation and thieves in this market...Cramer has a vedio talking about this. He manipulated when he was a hedge fund manager..he said they hook up to manipulate..