Changyou.com (NASDAQ:CYOU)

CAPS Rating: 2 out of 5

Recs

4
Player Avatar luebypopoff (27.95) Submitted: 4/7/2009 5:11:35 AM : Underperform Start Price: $21.80 CYOU Score: +0.47

This IPO is a get quick rich scheme for CEO Wang. CYOU only has one game, TLBB, that is already waning in popularity. The next game releases aren't until late '09 and '10. There is no guarantee these games will be successful making this stock a risky bet at best.

Report this Post 6 Replies
Member Avatar HarryCaraysGhost (99.73) Submitted: 4/16/2009 8:36:16 PM
Recs: 0

I think your right. I only picked this because usually an IPO goes up due to excitement, only to tail off. I'll take 40% though. I was gonna wait another week but why risk it.

Member Avatar JoeAgresti (< 20) Submitted: 5/5/2009 11:04:15 AM
Recs: 0

you might be right on the company long term but right now you are dead wrong on the stock, and thats all that really matters

Member Avatar IUMoneyMaker (78.42) Submitted: 7/2/2009 12:57:31 PM
Recs: 0

Great company to play options with.... It has high volitility and I have been making money daily trading options... Long term its hard to judge since it has several games that have yet to be released.... MMORPG as far as an industry over there is great and only looks to grow stronger

Member Avatar luebypopoff (27.95) Submitted: 7/2/2009 8:33:44 PM
Recs: 0

IUMM:
This is, indeed, a volatile stock. I'm not seasoned enough to play with the options, but I wish I had saved my under-perform pick until the stock had hit the upper 30's. But, I still stand by my initial call, that this stock will not last. 2 reasons for this. 1) As an expat living in China, the recovery here isn't as grand as everyone thinks it is. Look at electricity usage in the country... it isn't going up. Chinese companies are living off backlog, not producing new things. Plus, with the global economy still shrinking, no one has more to lose than China. The economic crisis in China is far from over. 2) The online game playing in China is considered by many to be a serious social issue. What happens in China when the government believes that something is adding to the social unrest? They cut its head off. China is unpredictable, and if they think that online gaming is creating a social problem, they will outlaw it. This makes the long term viability of CYOU quite risky. Keep playing the options... make a lot of money, but keep in mind, in the long run, this company is headed for the pennys.

Member Avatar luebypopoff (27.95) Submitted: 8/3/2009 8:27:05 PM
Recs: 0

I responded to your post before about China cutting the head off of industries that it doesn't like. In the past month, this concept has been brought center stage with China blocking social networking cites, including Facebook. Here is a link to an article in the NYTimes about China banning online games that glorify the mafia: http://www.nytimes.com/2009/07/29/world/asia/29china.html?emc=eta1. A very interesting article that is also a foretelling sign of things to come in China's online game world.

Member Avatar QwertyHero (< 20) Submitted: 9/29/2009 12:41:25 AM
Recs: 0

Wait a second, the CEO's name is Wang???

HAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!

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