China 'search' leads to Sohu.com (SOHU)

Filed under: International markets, Internet, China, Newsletters, Stocks to Buy, Technology

"Although I am not a big fan of either technology stocks or Chinese stocks, bear markets do create opportunities -- such as Sohu.com. (NASDAQ: SOHU), says Jack Adamo.

In his Jack Adamo's Insiders Plus newsletter, the advisor reviews Sohu.com, the second-largest internet search engine company in China.

"In recent quarters, it has made 42% of its revenues from search and display advertising; the rest comes from online gaming and wireless services. Earnings in the September quarter grew by more than fourfold year-over-year.

"With the Olympics over and the economy slowing to an expected GDP rate of 7%, earnings growth at Sohu is expected to slow as well. The last few quarters bear that out. But even in the slowing environment, earnings were up 14% compared to the June quarter.

"For a Chinese stock, this may be considered to be a relatively slow grower, but the price is right. Selling at less than 10-times earnings, you'd be hard pressed to find a better buy among well-established Chinese companies.

Continue reading China 'search' leads to Sohu.com (SOHU)

China 'search' leads to Sohu.com (SOHU) originally appeared on BloggingStocks on Tue, 16 Dec 2008 11:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments