Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: Sohu skyrocketed yesterday afternoon on reports originating from the South China Morning Post that said Sohu was in talks with investment banks and private equity funds to go private. CFO Carol Yu said there are no such discussions in progress or even being considered and, as such, the rumors are entirely inaccurate.
Now what: Investors tend to get rather excited when there's speculation of a company going private, since any such deal always entails a premium to current prices as incentive for shareholders to approve. The flip side of that is that investors are disappointed that private equity firms are, in fact, not buying out the company. Shares have now returned from whence they came before the rumors surfaced, so the stock isn't really better or worse off after the episode. Market speculation can be a distraction to management, so promptly shutting down rumors allows executives to get back to business.
Interested in more info on Sohu.com? Add it to your watchlist by clicking here.
The amount of data we store every year is growing by a mind-boggling 60% annually! To make sense of this trend and pick out a winner, The Motley Fool has compiled a new report called "The Only Stock You Need to Profit From the NEW Technology Revolution." The report highlights a company that has gained 300% since first recommended by Fool analysts but still has plenty of room left to run. To get instant access to the name of this company transforming the IT industry, click here -- it's free.