Its amazing after reading the report that this growth company trades at such a discount. After getting wacked last week, due to CYOU (which they are a part owner of) looking to develop more games (yes with upfront costs) it is strange that SOHU sold off like it did.
Did investors not want CYOU to grow (which requires new games obviously)? The big money knows where SOHU is going, and that is to $80 rather quick.
I really couldn't find any bad news in the report, except the slight loss of $2.8 million to shareholders. The growth should overcome the loss in the next quarter for this monopoly (not to mention the continued synergies of the merger with GeoEye together with the more tax friendly and efficient headquarters) and 2014 appears to be very strong. A 25% stock price jump is imminent thanks to the US government and their love for satellite imagery before years end (U. S. Government revenue grew 53% to $100.8 million compared with third quarter 2012, including a 353% increase in value-added services to $37.6 million).
We have followed this stock for around 4 years ever since a Goldman analyst slapped a buy rating on them. Since then, the stock is worth a fraction of that and that analyst was let go. If VISN is not making money today, then you gotta figure there only assets (the screens the have installed for ad revenue) are only depreciating and eventually will need to be replaced. I agree with your assessment above (we hold no position) and encourage your continued education to others.
We completely agree with schmockey...and hold no position in this company. There is a good saying that applies here, "everything that goes up, must come down." There is no published news, that has changed our opinion. Good luck to all.