Out Fox The $treet

Summary Qihoo 360 easily surpassed analyst estimates for Q414. The Chinese Internet stock continues to trade at a compelling valuation forecast by one analyst at roughly 9x 2016 EPS estimates. The quarterly report did nothing to alleviate concerns that leave the stock in the value trap position. After the close on Monday, Chinese technology company Qihoo 360 Technology (NYSE: QIHU ) reported Q4 results that generally smashed analyst estimates. While the top line growth rate was phenomenal, the lingering issues that sent the stock plunging from over $120 to below $50 in the last year probably weren't resolved. Read the full article at Seeking Alpha. Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Summary Baidu easily exceeded Q214 earnings estimates. The stock trades at a favorable valuation with multiple expansion. Chinese search stocks in general remain cheap. When last covering Baidu (NASDAQ: BIDU ) , the stock was under pressure due to fears over SEC bans on auditors in China. At the time in January of 2013, the stock slipped below $160 before an eventual bottom near $140 that April. Investors were encouraged to focus on mobile search growth and ignore the over flamed SEC concerns. Fast-forward to today and the stock is surging beyond $225 based on fast mobile growth. The crazy part is that investors might not be too late to invest in this story. Read the full article at Seeking Alpha. Disclosure: Long BIDU. Please review the disclaimer page for more details. 

One of the more puzzling aspects of the China Internet stock boom has been the general lack of interest in ChinaCache International ( CCIH ) . Well until the stock recently got a major boost from limited publicity. Anybody following the original China Internet boom back in 2010 might recall that ChinaCache had a hugely successful IPO that soared 100%. The 'Akamai of China' quickly collapsed on the fears of fraud that hit every Chinese stock for the next couple of years. The stock has now doubled in the last month; yet it still trades at industry low multiples by an extreme margin. Read the full article at Seeking Alpha. Disclosure: Long CCIH. Please review the disclaimer page for more details. 

After one of the biggest IPO gains back in 2010 and comparisons to Akamai Technologies ( NASDAQ: AKAM     ) , ChinaCache ( NASDAQ: CCIH     ) has mostly toiled in obscurity the last three years. While the content and application delivery network provider has struggled with sustainable profits, the company continues to generate fast growth having recently regained a 30% growth level again. With China tech stocks from Qihoo 360 Technology ( NYSE: QIHU     ) to Badiu surging this year as 3G mobile services increase the Internet reach in China, ChinaCache has gotten some market interest, but the stock still trades far below normal multiples for a fast-growing tech stock. Read the article here . Disclosure: Long CCIH and BIDU. Please review the disclaimer page for more details. 

Only a month ago,  Baidu (NASDAQ: BIDU ) was struggling to stay above $90 as the company faced margin and competitive pressures from the shift toward mobile internet usage and more specifically, mobile search, that it doesn’t dominate like desktop search. The leading Chinese search provider has increased operating expenses in order to expand research and development and marketing in order to build out the mobile products and to publicize more » Disclosure: Long BIDU. Please review the disclaimer page for more details. 

With the transition to mobile search around the world, it probably shouldn’t be too surprising that Baidu (NASDAQ: BIDU ) has struggled over the last year. In fact, the dominant player in Chinese search faces a bigger issue as the Chinese move quicker towards mobile. The China Internet Network Information Center reported that the total online population rose to 591 million with wireless users surging to 464 million. The percentage more » Disclosure: Long BIDU. Read the full disclaimer page for more details. 

A common theory in the technology world is the concept of investing for the future. Typically, these phases take place prior to a company going public, but lately several large-cap techs have started campaigns to dramatically increase expenses to capture mobile growth. Ironically, the market has chosen to punish one stock while giving the other a big pass. Not to mention, the mobile transition has been a constant profit disruption to most major firms, as the initial traffic flows don't offset the lower monetization levels. Over the last couple of weeks, both Baidu (BIDU) and Facebook (FB) have reported that margins were greatly impacted by ramped up spending for mobile. The only difference is that Facebook continues heading to recent highs while Baidu languishes at multi-year lows, appearing as if the stock might head much lower. Read the full article at Seeking Alpha. Disclosure: Long BIDU. Please review the disclaimer page. 

Through April of this year, Baidu, Inc. (BIDU) was one of the hottest tech properties in the investment world. The stock of the leading Chinese language internet search provider reached close to all time highs around $150 and a market value of $55B. Now the stock appears to be falling off the China cliff. Not only is the stock facing less and less investor appetite for Chinese stocks, but now the fears are growing that all Chinese stocks face delisting possibilities due to audit issues. While the S&P 500 remained close to recent highs on Wednesday, Baidu again plunged to a new 52 week low. Other issues continue to pop up over the conversion to mobile reducing the click through rate (CTR) and more competition from Qihoo 360 Technology (QIHU) . All of these issues have pushed the stock down to a very cheap valuation with a PEG near 0.5. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

At the end of 2010, China internet stocks saw a surge in interest leading to some rather magnificent IPO pops. The next Facebook, Amazon (AMZN), Akamai (AKAM), and many other leading tech companies were launched onto the US markets at sometimes very expensive prices. Investors were eager to obtain the next big thing from the fast growing China economy. Back in April I wrote about how investors should beware of the meteoric rise in the below four IPO stocks. [See China IPOs Gallop Out of the Gate: Time to Buy?] Unfortunately as months have passed, the picture isn't so bright for the sector these days. The problem relates to the distrust in China stocks in general due to numerous fraud allegations that hit the reverse merger sector. Then some previously thought to be legitimate China stocks like Longtop Financial and Sino-Forest were accused of frauds causing even the IPO stocks to come under question. Combine that with high valuations and the stocks have plunged since the post IPO p...

On Thursday, two more stocks IPO'ed at significant gains. Unfortunately small investors were left out of the process until the stocks opened significantly higher. By that time though, these investments aren't attractive anymore and if anything the small investor comes rushing in and loses money. Nothing new in the investment world that continues to be rigged against the average small investor. Both Zipcar ( ZIP ) and Arcos Dorados ( ARCO ) rose over 25% on the first day of trading.... Read the full article at Seeking Alpha .  Disclosure: Long CCIH. Please review the disclaimer page.  

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.