China Internet Plays Stay Hot
China internet stocks continue to show amazing gains as Sohu.com Inc. (NASDAQ:SOHU) leads the charge, trading at $106.63, +10.94 (+11.43%). SINA Corporation (NASDAQ:SINA) is not far behind and even small caps like China Finance Online Co. (NASDAQ:JRJC) is getting in the mix with a solid gain of 0.84 (+15.53%).
These stocks have been the hottest plays out of China recently as Baidu.com, Inc. (NASDAQ:BIDU) was a $10.00 stock in 2009 and now sits at $150.00 per share. While these stocks have been hot, the multiples are getting a little excessive. In most cases, these stocks are trading at forward price-to-earnings ratios of 50 or higher. While amazing to watch and marvel at, a true investor and swing trader would not touch them with a ten foot pole until they have corrected.