CYOU: for fans of stocks with unintentionally funny names

I recently put some money in Changyou. I did it for three reasons:

  • The stock went up 10% last week because the company beat its earnings.
  • The company represents 50% of SinaCorp’s profits, a stock that’s flying high right now.
  • Depending on who you ask, the stock is either at 6 P/E or at 13 P/E. That’s pretty low considering that the Chinese internet market is set to explode over the next few years. Usually that sort of P/E is set for ossified industries like the automotive one.
  • Analysts seem to be high on video games eventually adopting the online streaming model that movie rental companies like Netflix are swiftly adopting.
  • And, last but not least…

  • Its Nasdaq letters are CYOU. This is perfect for when either your stock goes up (“Well, my stock is gaining! C YOU!”) or down (“C YOU, market value.”)

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