Posts for Ticker ‘SOHU’

Top 10 Analyst Upgrades, Downgrades, Initiations (COG, COCO, INTC, RSH, SOHU, SE, TXN, HTM, VZ, WSH)

These are the top ten analyst calls for upgrades, downgrades, and initiations we have seen early this Tuesday morning from Wall Street:

Cabot Oil & Gas (NYSE: COG) Raised to Overweight at JPMorgan.
Corinthian Colleges (NASDAQ: COCO) Started as Buy at Deutsche Bank.
Intel Corporation (NASDAQ: INTC) Started as Buy at Kaufman Bros.
RadioShack (NYSE: RSH) Raised to Hold (from Underweight) at KeyBanc.
Sohu.com (NASDAQ: SOHU) Cut to Sector Perform at RBC Capital Markets.
Spectra Energy (NYSE: SE) Cut to Sell at Citigroup.
Texas Instruments (NYSE: TXN) Raised to Outperform at FBR Capital Markets; Started as Hold at Kaufman Bros.
US Geothermal Inc. (AMEX: HTM) Started as Overweight at Thomas Weisel.
Verizon Communications (NYSE: VZ) Raised to Outperform at Wells Fargo.
Willis Group (NYSE: WSH) Cut to Market Perform at KBW.

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Jon C. Ogg
October 27, 2009

Posted on: October 27, 2009 – 7:54 am in Analyst Calls, , , , , , , , , ,

IPO Market Showing Concern (MG, TLCR, BSBR, EM, CLNY, RA, FIG, ARI, VITC, ECHO, CPC, GAME, SNDA, CYOU, SOHU, CPIX, OMER, BX)

bull-and-bear-image2It was just in August that practically every single initial public offering was trading above its IPO price.  The market had rallied significantly, and still rallied after that to just this week have a 10,000 handle on the DJIA.  Investors started warming to more risk-based capital, and investment bankers were finally able to get deals done.  Even waves and waves of secondary offerings were able to be absorbed merely by brokers being able to tell clients they could buy stock at an implied discount to the average price over the few days before.  But suddenly, the IPO market has turned out some real dogs with fleas.

Mistra Group (NYSE: MG) priced its offering at $12.50 on October 7.  While it traded as low as $12.17, it has escaped the hangman’s file of ‘busted deals’ as it is now a $13.51 stock.  The one thing that may have helped was that it priced under an initial range of $14 to $16 per share.  Talecris Biotherapeutics Holdings Corp. (NASDAQ: TLCR) also went into the busted category temporarily after hitting a low of $18.01 after a $19.00 pricing.  Fortunately, it is up at $19.97 so is also now out of the hangman’s eyes.  Still, an 8% gain and a 5% gain in this market might leave some investors feeling lonely.  Banco Santander Brasil S.A. (NYSE: BSBR) was a very large IPO of over 500 million shares at an implied $13.40, and this one got out of the “busted IPO” dungeon on Thursday and closed at $13.51 on Friday.  Before Thursday it had spent its 6 prior trading sessions as a busted IPO.

Emdeon Inc. (NYSE: EM) had traded above $18.00 briefly after its IPO priced at $15.50 in August. But now the healthcare revenue and payment cycle management solutions provider, which is supposed to be a healthcare winner ahead, closed down at $15.35 on Friday  and had been slightly lower during the week.  This was effectively a re-IPO as Emdeon had been public before after General Atlantic Partners acquired it and it also received an investment from Hellman & Friedman. It also has ties to James Clark, the Netscape founder and was part of Healtheon.

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Posted on: October 17, 2009 – 8:45 am in ADR, Biotech, Business Services, China, Editor's Picks, Entertainment, IPOs, Mergers and Buy Outs, Private Equity, REIT, Secondary Offering, Trading Alert, Value Investing, , , , , , , , , , , , , , , , , ,

Shanda IPO Taking Shape (SNDA, GAME, CYOU, SOHU)

The spin-off IPO for Shanda Games Limited (NASDAQ: GAME) is coming next week and the company has set the expected price band for its 63+ million American Depositary Shares in range of $10.50 and $12.50 per share.  The company is a wholly-owned subsidiary of Shanda Interactive Entertainment Limited (NASDAQ: SNDA) and will in many ways continue after the IPO to effectively be under the parent.
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Posted on: September 16, 2009 – 4:05 pm in ADR, China, Entertainment, IPOs, Video Games, , , ,

Shanda Seeks Repeat Changyou.com and Sohu.com Performance (SNDA, CYOU, SOHU)

Money Stack ImageIPO investors have long been mixed about partial spin-offs, and just outright nervous when it comes to the term ‘tracking stock’ in an IPO.  Regardless of how you feel, it is impossible to deny whether or not the Changyou.com (NASDAQ: CYOU) spin-off IPO from Sohu.com (SOHU) has been successful.  In early April the IPO came out at a premium open. Shanda Interactive Entertainment Limited (NASDAQ: SNDA) now plans to submit a draft registration statement on a confidential basis to the SEC for a possible IPO of its Shanda Games Limited.  This is the online games business.
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Posted on: May 26, 2009 – 3:53 pm in ADR, China, Entertainment, IPOs, Video Games, , ,

Top 10 Analyst Upgrades & Downgrades (ABC, BWA, DRYS, FIS, ITW, JPM, MHP, NOK, SOHU, ZUMZ)

There are not so many brokerage calls this morning for it being earnings season, but these are the top 10 analyst calls of upgrades and downgrades from Wall Street we have seen early this Friday morning:

AmerisourceBergen (ABC) Raised to Buy at Deutsche Bank.
Borg Warner (BWA) Cut to Market Perform at Wachovia.
DryShips (DRYS) Raised to Outperfom at Oppenheimer.
Fidelity National Information Services (FIS) Raised to Outperfom at Oppenheimer.
Illinois Tool (ITW) Cut to Market Perform at Wachovia.
JPMorgan Chase & Co. (JPM) Cut to In-Line at Foxx-Pitt.
McGraw-Hill (MHP) Raised to Overweight at JPMorgan.
Nokia (NOK) Raised to Neutral at JPMorgan.
Sohu.com (SOHU) Cut to Sell at Deutsche Bank.
Zumiez (ZUMZ) Raised to Buy at KeyBanc.

Jon C. Ogg

Posted on: April 17, 2009 – 6:48 am in Analyst Calls, , , , , , , , , ,

Rally & IPO Reception Could Heat IPO Market Again (CYOU, SOHU, MJN, BMY, LOPE)

money-stack-image4It has been no secret that the market for initial public offerings has been one of the biggest ghost towns in the financial markets.  The secondary markets and the bond markets are opening up capital to companies, even if it comes at historically expensive prices.  But still, IPO’s have been dead.  Based upon the recent move of Changyou.com (NASDAQ: CYOU) and Mead Johnson Nutrition Company (NYSE: MJN) and upon a few other factors like a nearly 25% rise from March lows, there could be some hope that the U.S. IPO market will start to open back up.
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Posted on: April 2, 2009 – 4:01 pm in IPOs, , , , ,

IPO ALERT: Sohu.com’s Changyou.com Hits Today (SOHU, CYOU)

money-stack-image2Sohu.com Inc. (NASDAQ: SOHU) is completing the first partial spin-off initial public offering of its Changyou.com (NASDAQ: CYOU).  This IPO will trade today and we are still awaiting the time stamp from NASDAQ.   We had been given a price range of $14.00 to $16.00 per share, and the IPO priced at the $16.00 level for some 7.5 million shares.  There are some solid merits behind this company, and there are some who are very cautious on it.

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Posted on: April 2, 2009 – 7:34 am in ADR, China, Entertainment, IPOs, Video Games, ,

The Two Sides of the Sohu.com’s Changyou.com IPO (SOHU, CYOU)

money-stack-image55We may actually get an IPO as soon as early next week.  This recent filing from Sohu.com Inc. (NASDAQ: SOHU) for the proposed spin-off of Changyou.com is supposed to trade under the ticker of “CYOU” on NASDAQ.  What will be more interesting to see than the actual IPO is whether its backers win or whether the doubters win.  An amended filing after the close today shows additional data showing a $14 to $16 price range.
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Posted on: March 25, 2009 – 3:51 pm in ADR, China, Entertainment, IPOs, Video Games, ,

Top Pre-Market Analyst Upgrades (BIDU, BBY, CLX, DO, DD, MCHP, SOHU, WFT, STJ, SUNH)

Money_stack_picThese are some of the top pre-market analyst upgrades and positive research calls we are seeing from Wall Street this Wednesday morning:

  • Baidu.com (BIDU) Started as Outperform at Bernstein.
  • Best Buy (BBY) Raised to Overweight at Barclays.
  • Clorox (CLX) Raised to Hold at Citigroup.
  • Diamond Offshore (DO) Raised to Buy at Goldman Sachs.
  • DuPont (DD) Started as Outperform at Credit Suisse.
  • Microchip Tech (MCHP) Raised to Overweight at Barclays.
  • Sohu.com (SOHU) Started as Outperform at Bernstein.
  • Weatherford (WFT) Raised to Overweight at JPMorgan.
  • St. Jude Medical (STJ) Raised to Outperform at William Blair.
  • Sun Healthcare (SUNH) Raised to Buy at Citigroup; Started as Outperform at RBC.

Jon C. Ogg
January 28, 2009

Posted on: January 28, 2009 – 8:34 am in Analyst Calls, , , , , , , , , ,

Early Bird Analyst Upgrades (AUO, CLB, LAB, SKM, SOHU)

Money_stack_picThese are some of the early bird upgrades and positive research calls we have seen from Wall Street analysts this Wednesday morning with more than two hours to the open:

  • AU Optronics (NYSE: AUO) Raised to Overweight at HSBC.
  • Core Labs (NYSE: CLB) Raised to Outperform at JPMorgan.
  • LaBranche (NYSE: LAB) Raised to Buy from Sell at Goldman Sachs.
  • SK Telecom (NYSE: SKM) Raised to Buy at Citigroup.
  • Sohu.com (NASDAQ: SOHU) Started as Outperform at Oppenheimer.

Jon C. Ogg
January 14, 2009

Posted on: January 14, 2009 – 7:33 am in Analyst Calls, , , , ,

Top 10 Pre-Market Analyst Calls (WTR, BYD, CNET, CTRP, GOOG, SOLD, NITE, NYX, SOHU, VDSI)

These are ten of the top analyst calls we are focusing on this morning:

  • Aqua America (NYSE: WTR) cut to Market Perform at Wachovia.
  • Boyd Gaming (NYSE: BYD) started as Sell at Banc of America.
  • CNET (NASDAQ: CNET) started as Buy at Kaufman Bros.
  • Ctrip.com (NASDAQ: CTRP) cut to Neutral at Piper Jaffray.
  • Google (NASDAQ:    GOOG) started as Buy at Kaufman Bros
  • Housevalues (NASDAQ: SOLD) raised to Buy at Cantor Fitzgerald.
  • Knight Capital Group (NASDAQ: NITE) cut to Equal Weight at Lehman Brothers.
  • NYSE Euronext (NYSE: NYX) raised to Buy at Deutsche Bank.
  • Sohu.com (NASDAQ: SOHU) cut to Hold at Deutsche Bank.
  • VASCO Data Security (NASDAQ: VDSI) raised to Buy at Jefferies.

Jon C. Ogg
May 7, 2008

Posted on: May 7, 2008 – 7:01 am in Analyst Calls, , , , , , , , , ,

Top 10 Pre-Market Analyst Calls (ANPI, BP, CBS, JRCC, WFR, SVVS, SNN, SOHU, KNOT, UA)

These are not the only analyst calls affecting shares today, but these are ten of the calls that we are focusing on this Wednesday morning:

  • Angiotech Pharmaceuticals (NASDAQ: ANPI) raised to Outperform at RBC Capital Markets.
  • BP plc (NYSE: BP) raised to Outperform at Credit Suisse.
  • CBS (NYSE: CBS) downgraded to Market Perform at Wachovia; Raised to Hold at Citigroup.
  • James River Coal (NYSE: JRCC) raised to Buy at UBS.
  • MEMC Electronics (NYSE: WFR) downgraded to Neutral at JPMorgan.
  • SAVVIS (NASDAQ: SVVS) downgraded to Hold at Jefferies and downgraded to Equal-Weight at Lehman.
  • Smith & Nephew (NYSE: SNN) raised to Outperform at Wachovia.
  • Sohu.com (NASDAQ: SOHU) downgraded to Perform at Oppenheimer.
  • The Knot, Inc. (NASDAQ: KNOT) raised to Outperform at Oppenheimer.
  • Under Armour (NYSE: UA) downgraded to Hold at Citigroup.

Jon C. Ogg
April 30, 2008

Posted on: April 30, 2008 – 6:36 am in Analyst Calls, , , , , , , , , ,

Sohu.com Earnings May Guide Chinese Web Stocks (SOHU, BIDU, NTES)

On Monday evening, we’ll get to see earnings out of Sohu.com Inc. (NASDAQ: SOHU). The estimates from First Call for the Chinese online search and advertising company $55.42 million in revenues.  Estimates for fiscal 2008 appear to be $1.55 EPS on $272.55 million in revenues.

As a reminder, the company just raised guidance back in December to $0.36 to $0.38 non-GAAP EPS on revenues of $55.5 to $57.5 million, with its non-advertising revenues at $24.5 to $25.5 million.  This is also after the company stock did so well after its last earnings.

Analysts have an average price target upwards of $62. If Friday’s closing prices are any indicator and if the earnings were coming out immediately, it appears that options traders would be pricing in a move of up to $4.00 in either direction. We are a bit cautious in using that as a firm number because of the activity in web stocks on Friday.  You can bet that Baidu.com (NASDAQ: BIDU) and Netease (NASDAQ: NTES) will be watching this earnings report closely.

As Sohu is a Chinese Internet stock, this one was up big on Friday after the announcement of the largest merger of the Internet as far as total reach.

Sohu.com’s 52-week trading range is $20.94 to $64.83.

Jon C. Ogg
February 2, 2008

Posted on: February 2, 2008 – 9:53 am in ADR, China, Earnings, Internet, , ,

Media Digest 10/30/2007 Reuters, WSJ, NYTimes, FT, Barron’s

According to Reuters, Alan Greenspan say that the demand for subprime mortage securities is down.

Reuters writes that the UAW is gearing up for tough talks with Ford (F).

The Wall Street Journal reports that the Fed may not cut rates at all.

The Wall Street Journal writes that Google (GOOG) plans to announce plans for its G-Phone within the next two weeks.

The Wall Street Journal writes that some analysts believe that Countrywide (CFC) may have trouble keeping its plan to make a profit in Q4.

According to the FT, Countrywide (CFC) accused the federal government of doing nothiing to improve housing.

The FT writes that several private equity firms are in talks to sell stakes to a Chinese fund.

Barron’s writes that Chinese firm Sohu (SOHU) bet its earnings forecast and the shares rose.

Bloomberg writes that Orcale (ORCL)  may lower its bid for BEA Systems (BEAS) due to the lack of another buyer.

CNN Money writes that vulture investors have raised large sums to buy mortgage-back securities but have not used the money, an indication that they have further to fall.

Douglas A. McIntyre

Posted on: October 30, 2007 – 2:55 am in Press Digest, , , , , ,

Sohu = So Huge (SOHU, BIDU)

Well, after looking at the news it is of little surprise that Sohu.com (NASDAQ:SOHU) is on fire in after hours trading.

Last week Baidu.com (NASDAQ:BIDU) ran up on what logic should have dictated as an opportunity to take profits after the quarter was only a bit above expectations and the guidance was merely in-line.  The new search data  results show why investor excitement is there despite what the company said.

Sohu.com (NASDAQ:SOHU) is defying that as any sort of trend out of a "Chinese Web Stock" as it beat earnings and raised guidance.  Sohu.com posted earnings at $0.25 EPS vs $0.21 estimates and Revenues $51.5 million versus $46.65 million estimates.  It also raised guidance: $0.28 to $0.30 EPS on $53.5 to $55.5 million, versus estimates of $0.25 EPS and $49.4 million revenues.

Sohu.com traded up over 7% to $53.53 in regular trading, which is a new high above the $20.94 to $50.53 trading range over the last 52-weeks.  If that wasn’t enough, shares are up another 10% at $58.00+ in after-hours trading.

Whether we were skeptical of the Baidu.com results being worth a continued trading surge is immaterial.  Sohu.com turned in the sort results we’d have expected to continue the Baidu.com run.  As of the close, Sohu.com had roughly a $2.0 Billion market cap. 

If we applied the same sort of upside to estimates on a smoothed out basis and a gradualizing for 2008 consensus estimates of $1.24 EPS then we’d come up with a range of $1.34 to $1.42 (estimated) new range and a mid-point of $1.38 would give this one a forward 2008 P/E of just over 42. That is less than half the 96 forward 2008 P/E of Baidu.com.  Unfortunately, making the comparison is not apples to apples.

We recently named one of the key Asian web destinations to our "Small Cap Internet Watch List" of Takeover Candidates for subscribers of our "Special Situation Investing Newsletter."  All of these stocks will also occasionally appear in the new 24/7 Wall St. "New Media/Old Media" subscriber based newsletter that discusses potential acquisitions, media trends, winners and losers, and new media initiatives from old media.

More on the China front: China is looking into more private equity investments; China still is a super-heated economy; look at China Mobile growth numbers; PetroChina may be raising more cash. 

Jon C. Ogg
October 29, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.  Some of these points are also discussed from time to time on our free email list.

Posted on: October 29, 2007 – 6:40 pm in China, Earnings, Internet, ,

Baidu.com Up Eight Straight Days, Can It Continue? (BIDU, SINA, SOHU, NTES)

Baidu.com, Inc. (NASDAQ:BIDU) is one of these stocks that is pretty amazing when you look at its trading activity and its volume.  BIDU stock closed up Wednesday another 2.6% at $275.95 on 11.8 million shares, which is another yearly high and more than double average daily volume.  This wouldn’t be a big day on a percentage stock move basis alone unless you look at how it has been trading of late. 

This stock has managed to close up for Eight consecutive days from its last down day on September 2, 2007 when shares closed at $213.64.  Here are the descending closing prices from before Wednesday: $268.79; $252.89; $234.88; $232.47; $230.12; $227.04; $218.10; $213.64. But compare that to dates below and this one looks amazing.  If you compare this to lows in the past months it becomes "exuberant":

  • Lowest close August: $168.89 on August 16, 2007
  • Lowest close July:       $175.04 on July 24, 2007
  • Lowest close June:      $135.64 on June 12, 2007
  • Lowest close May:        $121.35 on May 1, 2007
  • Lowest close April:       $93.523 on April 2, 2007
  • Lowest close 52-Week: $87.28 October 2006

Obviously this one has everything going for it.  It is a hot stock for sure, but it is a hot web search engine stock in the even hotter Chinese market.  The overly obvious is that one incredible quarter is being priced in.  Should we dare we mention the hype from the coming 2008 Olympics?  But what else could be coming besides that?  Obviously a stock splitcomes to mind, but what else?

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Posted on: September 19, 2007 – 8:16 pm in ADR, China, Internet, , , , , , , , , ,

Google To Buy Into China

Google (GOOG) plans to make several acquisitions in China over the next several quarters, according to TechCruch.

GOOG market share there trails China search engine Baidu (BIDU) by a large margin. By some measures, BIDU has as much as 60% of the market.

GOOG cannot afford to be so far behind in the world’s second largest internet market. Buying in may be the only way to solve that.

The most likely candidates would seem to be portal Sina (SINA) and Sohu (SOHU). Sohu’s market cap is just over $1 billion and SINA;s is about $2 billion.

GOOG has little to lose buy putting $5 billion into owning large internet properties in China. It would almost assure the huge search company of a large presence there.

The only question is whether the communist Chinese government would kick about it.

Douglas A. McIntyre

Posted on: August 17, 2007 – 6:37 am in Uncategorized, , , ,

SINA Doesn’t Make The Grade (SINA, SOHU, BIDU)

SINA Corporation (Nasdaq:SINA): Non-GAAP net income was $16.1 million or $0.27 diluted non-GAAP and $0.25 GAAP EPS; net revenues increased 11% year over year to $59.8 million, within the upper range of the Company’s guidance of between $58.0 million and $60.0 million.  Estimates were $0.24 non-GAAP EPS & $59.6 million in revenues.  Non-advertising revenues for the second quarter of 2007 totaled $18.6 million, a 23% decrease from the same period in 2006 and a 5% decrease from the previous quarter.  Gross margin for the second quarter of 2007 was 62%, compared to 63% in the same period last year and 59% in the last quarter.

SINA’s guestimates are total revenues for the third quarter of 2007 to be between $63.0 million and $65.0 million, with advertising revenues to be between $45.0 million and $46.0 million and non-advertising revenues to be between $18.0 million and $19.0 million. Stock-based compensation for the third quarter of 2007 is expected to be approximately $1.7 million, which excludes any new shares that may be granted.  Unfortunately consensus estimates are $64.75 million and that isn’t going to cut it for a high-beta and high-growth Chinese web company.

The soft revenues and soft guidance has shares down over 5% in after-hours trading to $39.50.  SINA’s 52-week trading range is $21.70 to $47.05.  This has shares of Sohu.com (NASDAQ:SOHU) down almost 1% and Baidu.com (NASDAQ:BIDU) down 0.3% in after-hours trading.

Jon C. Ogg
August 6, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: August 6, 2007 – 4:19 pm in Earnings, Internet, , , , ,

Sohu (SOHU), So Small

A look at Sohu’s (SOHU) earnings for the last quarter shows how small and vulnerable China’s internet properties are compared with global operations like Google (GOOG) and Yahoo! (YHOO). It also indicates how much they may be overvalued.

Sohu is really not growing very quickly and its revenue is tiny. Total revenues for the quarter ended June 30, 2007 was $39.0 million, compared to revenues of $33.1 million for first quarter ended March 31, 2007, and $34.1 million for second quarter ended June 30, 2006. Net income for second quarter of 2007 was $5.7 million or $0.15 per fully diluted share.

The company estimated that total revenues for third quarter 2007 to be between $45 million to $47 million.

Sohu has a market cap of $1.25 billion and its stock is up 65% over the last year, while Google’s is up 40%.

Sohu’s shareholders have a problem. China may be large, but use of web portals is not financially significant. None of the Chinese internet companies including search leader Baidu (BIDU) have revenue that even approaches a company like Yahoo!.

But, the disadvantage is great than that. While Google and Yahoo! can come into the Chinese market and compete for market share by investing large sums in local operations or forming partnerships with existing online companies in the country, the Chinese firms do not have the capital or the means to expand their revenue base into the US or Europe. Those markets are probably permanently closed to them while China may be permanently open to the large US online companies.

That makes big valuations of Chinese internet firms a bit riskier.

Douglas A. McIntyre can be reached douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.

Posted on: August 2, 2007 – 5:33 am in Uncategorized, , , ,

Sohu (SOHO): Video Sharing Spans The Globe

Reuters reports that Sohu.com (SOHU), the large Chinese news and information site, plans to add video-sharing as a key feature for users. The company’s CEO was quoted as saying: "The overall strategy of Sohu is to be not only a news portal but also a big community — like MySpace,"

Sohu, which plans to upgrade its blogging service to include video-sharing, had around 400,000 active online users.

The user base is tiny compared with YouTube, so it is somewhat difficult to imagine that the Chinese initiative will help it much. Even though US search engine and portal users attract huge users to their sites, most of the video sharing and viewing is done elsewhere, especially at YouTube.

Douglas A. McIntyre

Posted on: July 11, 2007 – 9:59 am in Uncategorized,