Over the last 6 months, China has had four internet related IPOs that soared nearly 100% on the first trading day. The latest came last week in the form of Qihoo 360 Technology (QIHU). The stock was up an amazing 134% in its market debut, but only ranks second trailing the 161% gain of Yoku.com (YOKU). Should you buy now?
Any prudent investor should take a pause after such a meteoric rise. Sure the company has a lot of potential but most companies don't live up too such grand hype. After all, there was a reason that the investment bankers priced it so much below the closing price. Do you really think they turned down extra fees intentionally?
Read the full article at Seeking Alpha.
Disclosure: Long CCIH in client and personal accounts. Please review the disclaimer page.