My guess is that near close today it will begin to slide. Regardless of earnings, it won't get much higher even if earnings blow the doors off. One comment by some stupid analyst or a Chinese government official and it could go down $10 before you could blink. My cost is $40.50 and I am out of this baby in the next hour at $53 and some change and tomorrow I will take all the profit from my Goldman china funds.
China has been a great ride for me (about 38% in the past 6-7 months, but I think the smell if off the rose.
SOHU $51-$52 on Monday after market close. either way up 10 or down 10 on Tuesday. I will not bet this time either way. Long side seems to be better choice because IPO alibaba is on its way trading in H.K. nov 6.
wireless situation has improved. online games are adding to the eps. search technology is ramping up revs. video ads. blog $. and yet to come is ecommerce opportunities. this all ahead of the olympics puts upward pressure on pricing of its core advertising business. lets face it, the cost of the slots on its website are considered extremely cheap when compared with sites in the same business model outside of China.
Moscow will believe tears -- just a matter of time.
Next year's earnings, around 1.35/share, should be the peak. Growth will be slower after the games. So even given a 30 p/e of the peak e, the target should be $40. Just can not believe the insanity.