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NetEase, Inc. Message Board

  • herewelaunchtherocket herewelaunchtherocket Aug 31, 2005 9:54 AM Flag

    SOHU PE of 23 / 7th biggest web inWorld

    ****10 Reasons to Buy SOHU *****

    1/ CEO added to his stake early in August, owns about 23% of cy

    2/ PE of only 22.5 and Sohu has a strong balance sheet with more than $100 Mln in cash

    3/ 7th biggest web site in the world (compare it with Alibaba, in which YAHOO bought a 40% stake for about 1$bn, you will laugh)

    4/ 2/3rd of last Q revenues were in ADVERTISING which is growing very quickly / only 5% exposure to online game !(balance= Wireless services)

    5/ China is the second biggest country in terms of internet users (more than 100 Mln now? )

    6/ only 0.6 bn market cap (vs 2.6 for baidu and about 4bn for Alibaba)

    You will note that BIDU had 1.5 Mln (released on th 23rd august) earnings for Q2 vs 7.1 Mln for SOHU! => market cap of Sohu much lower for much more earnings... Not difficult to understand

    7/ SOHU = many web site = SOHU / SOGOU / CHINAREN / FOCUS... => Huge traffic for advertising

    8/ Huge short interest of 2.7 Mln shares, about 17% of the FLOAT!

    9/ MSN, AOL could want to increase business in CHINA

    10/ Guidance is very low for the next Q's... and Q4/Q1 should be the strongest Quarters with strong advertising

    I could add others like:

    *2008 Olympic games are in China
    *Yuan reevaluations to come

    Of course do your own DD

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    • Are you screaming for help? Do you think you know SOHU more than the market knows? Market has priced everything in for SOHU. That's it, that is the price for SOHU.
      From the technical point of view, SINA is better than SOHU.
      But, they all look awful compared to NTES.
      So buy NTES now!!!

      • 1 Reply to mc2k
      • Agree. Sohu growth is bad. I really can not see any growth point for sohu:
        ads -- can not compete with sina,
        short msg -- not growing
        sogou -- rank growth is good, but market share is too small.
        games -- not much
        Why buy sohu, while ntes has growth rate over 100% year over year and with pe ratio 16 for next year ?

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