Youku realizes they need to be part of a bigger platform. Bidding for it will be Baidu, Alibaba, and Tencent. Alibaba's interest may be a surprise to some, but its e-commerce customers could benefit greatly from advertising on Youku's videos. Youku is actually in an excellent position to have interest from all of the big players although it's bittersweet for management, who had originally hoped to conquer the China video market as a standalone.
You want to buy this BEFORE this becomes obvious to everyone, before revenues accelerate, and before their internet strategy takes off. With over $8 per share in real cash, there's little downside and 100-200% upside in the short term. Much more upside in the long term. The stock is only at this level because it's underfollowed by both the sell side and the buy side. You have to have the courage to buy an ignored stock based on your own intelligence and not wait for confirmation from everyone else, unless you want to pay double or triple the current price. This stock will jump suddenly and significantly when it has its move so you have to get in now.
This may be the last Chinese name to take off, as the others have already had their big moves.
Believe in yourself!
This has not yet happened but I believe it will sometime between tomorrow and the end of 2014. The downside risk from even a hint of this upcoming event is huge for Baidu, making the stock difficult to own based on an upside versus downside analysis.
The NSA spying on users by the US government adds another question as to why Google still singles out China as a place it avoids doing business.
From big cap internet companies to small cap internet companies, each Chinese segment is having its revaluation. The non-internet names are less followed by the sell side, so stocks like CISG are next to soon double or triple in a very short period of time. CISG has $8/share in real cash, and a business whose growth rate is about to start accelerating. I am an expert on all of the the Chinese ADRs and have been so for years. This stock is my top pick now.