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.
What: Shares of Chinese online gaming operator Changyou.com
So what: The separately traded online-gaming unit of Sohu.com
Now what: I understand that Asian countries are big gamers, and Changyou is taking advantage of that. As impressive as Changyou's customer list is, that's still just 8.3% penetration of the Chinese population, and there's a lot of work left to be done to convert free accounts into paying customers. The growth opportunity ahead of this company remains immense, yet the stock trades at just 11.6 times trailing earnings today.
Interested in more info on Changyou.com? Add it to your watchlist.