Sohu.com: China's online leader
From games to Web searches, the company is a proven play on the Chinese Internet market.
Sohu.com (SOHU) employs custom software to ease the input of Chinese characters and it's Sogou.com search engine stores more than 10 billion Web pages. But when it comes to making money, Sohu.com is all about the games.
The company reported earnings of $308 million in Q1 and online gaming contributed $167 million of that total, representing a 32% increase from year-ago levels.
Part of the reason for the company's success in the online game world is Changyou.com, a leading game creation company that was spun off from Sohu.com in 2007, but maintains strong ties with its former parent.
Strong content and attention to freshness has kept revenue growth strong for Sohu.com, with seven straight years of top-line growth of at least 19%. Revenue growth in 2012 was 25% and Q1 growth hit 36%.
SOHU hit $109 in April 2011, but a 15-month slump dropped the stock to $34 last July. Four months of base-building at that level gave way to a strong rally in December that pushed the stock to $50, which formed resistance for another four months.
A cup formation that began in late January (and formed a handle in early April) led to a strong rally beginning in late April, that gathered momentum (and volume) in May.
We think SOHU is a very solid bet, a stock of a proven company with competent leadership and big opportunities as games and search expand into the fast-growing mobile segment in China.
This is a pure China play, and a buy at a good price (we think you can buy here, though a dip back toward $60 is possible).
More from TheStockAdvisors.com
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Obamacare isn't the only reform hitting the US health industry. One company is emerging as a stronger player after recent struggles.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.