Tuesday, September 27, 2005

SOHU: A Relative Value vs. SINA

I believe SOHU is a long term buy on a relative value basis,my 12 month target is 27$, based on 23 times of estimated 2006 EPS.

Although investors love SINA for its No.1 position in terms of traffic and advertising revenue, I prefer SOHU shares for a few reasons:
* SOHU has a more stable management team than SINA.
* SOHU's advertising revenue is catching up. In particular, 17173.com will continue to benefit from the increased competition of online games and increased marketing cost for new games.
* SOHU relies less on wireless revenues, which are vulnerable to regulation changes.

Here is my model used to get earning estimates:



SOHU 092505 Posted by Picasa

4 Comments:

Anonymous Anonymous said...

Imagine Thousands Of Links Back To Your Web Site From Other People's Blogs!

3:00 AM  
Blogger Infactahost.com said...

Hey, you have a great blog here! I'm definitely going to bookmark you!

I have a generate web site traffic site/blog. It pretty much covers generate web site traffic related stuff.

Come and check it out if you get time :-)

2:04 PM  
Anonymous Anonymous said...

Sometimes, these gambles pay off, but there are occasions when they fail miserably,

2:08 AM  
Blogger Infactahost.com said...

Hey, you have a great blog here! I'm definitely going to bookmark you!

I have a advantage exchange marketing mynetsuccesscenter.com traffic traffic site/blog. It pretty much covers advantage exchange marketing mynetsuccesscenter.com traffic traffic related stuff.

Come and check it out if you get time :-)

11:20 AM  

Post a Comment

<< Home