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The purpose of this blog is for my personal use. It serves as my personal diary as I investigate Chinese internet/gaming companies for investment purpose. If you have any comments or disagreement, please give me feedbacks.

Wednesday, May 20, 2009

Sohu's new integrated multimedia Platform

I prepared this article about one month ago. But I miss placed this article until now.

One can find my last article on Sohu’s marketing campaign here:
http://chinese-net-gaming-stock.blogspot.com/2009/04/sohu-major-marketing-push.html

From the above article, Sohu is conducting a major marketing push to inform average Chinese of Sohu’s new integrated multimedia platform.

But what is this platform. Mr. Charles Zhang, the CEO of Sohu talked about it in the following article:
http://tech.163.com/09/0409/01/56E16DNS000915BF.html

It is an integrated platform consists of many components. Sohu is no longer just a portal. Sohu has many multimedia products that would entice the users.

It has the portal and blogs that can draw the users. By May of this year, Sohu will have its SNS (Social Network Service) product. All of them will be integrated.

In addition, Sohu had recently developed the HD (high definition) video channel. It includes the HD TV channel and movies. Sohu had purchased the IP right to those video contents.

Sohu’s biggest push is in the area of software applications. A major push will be in the area of Sogou Search, Sogou Pinyin Input Method, and Sogou browser.

Thus, Sohu is no longer just a portal. A portal is more like a channel. Sohu has many channels. Portal, blog, SNS, video, search, Pinyin method, browsers are all channels that an average user can use to access Sohu.

One can think of this as a spider with many legs. The portal is only one of its legs. A user can get to Sohu’s integrated platform through any of its legs (blog, video, PC applications, etc.).

It is going to be exciting time for Sohu.

1 comment:

Great Penny Stocks Under 2 dollars said...

The very best type of measurement of how undervalued a stock is is the price to sales ratio of a companies stock. The price to sales ratio is the market cap of a companies stock compared to the amount of sales the company does on an annual bases. A good example of a company with a low price to sales ratio is carrols restaurant group the company has a market cap of just 240 million dollars but does over 800 million dollars in annual sales the company is solidly profitable. In other words the price that the market is valuing the company at is 240 million dollars this is only about one fourth of what the company does in annual sales 800 million dollars. The stock currently trades at about 11 collars a share under the symbol {TAST} I think the stock could get to 55.00 dollars a share over the next five years. I base this on the current net profit margin of around 1.75% or 14 million dollars on sales of 800 hundred million dollars. If the companies sales were to increase by 50% or 400 million dollars to 1.2 billion dollars over the next five years. And if the companies net profit margin were to expand from 1.75% to 5% or 60 million dollars over the next five years. Than if the companies stock increased in price to where it was trading at a price earnings ratio of 20 this would put the stock at 55 dollars a share. This may seem to be a somewhat optimistic scenario but not really that much. There are many stocks that trade at much higher price earnings ratios when they become popular than 20 times earnings. I find that companies like carrols restaurant group are very rare. I also find that companies that have low price to sales ratios that are profitable or of decent quality tend to become takeover targets or get taken private by private equity firms or the management of the company or other companies in the same business. A good example of a popular stock with a very high price earnings ratios is whole foods market it trades at 35 times annual earnings. If anyone has any question as of the validity of the information presented here any stock broker financial planner or CPA that knows how to value stocks will confirm everything presented here.

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