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Long term value investor, prefer dividends at my age. Best investments MVL Entertainment, HSY , SMBL and SBUX. Worst calls Ames Department stores and Bravo milk.
  • Yoku Tudou (YOKU) Me Crazy 5 comments
    Mar 4, 2013 3:42 PM | about stocks: YOKU

    I was certainly wrong in my rushing to buy Yoku Tudou (YOKU) stock at both a $29 and $20 price point from a short term perspective. It's seems every time I try to time an earnings report or buy with the hopes of short term gains or time a potential 'big move', the results are not very good and make me think I was crazy to jump in like that. But I make these trades with a long term horizon or see great potential for the company in the long haul in the decision making process.

    Long term I think this stock is a no brainer. More content thirsty devises sold (mobile phones and tablets) equals more demand for content and content platforms. Yoku could be bought out by a larger company due to their dominance in video, having the largest market share of China video content after merging with Tudou. Yoku is in the process of learning how to tame the wild demand and popularity of video content with profits balanced between advertising and VOD fee's. After listening to the conference call, I was left with the impression that the company is breaking new ground and leading the 'renaissance' in how advertising is sold in China, along with their entire business model which is new and evolving to begin with, possibly ahead of Netflix (NFLX) and Youtube (GOOG) in it's goals. With this renaissance / new model for selling advertising, along with the VOD / video sharing renaissance, will be growing pains. The saying "It takes money to make money" comes to mind in considering Yoku. You have to 'build it' before they come. Netflix (NFLX) has been questioned on their costs for buying content and some recent articles question whether their skimping on quality content is not hurting them. Netflix has been able to make paying large fee's for quality content work for them with Mad Men (AMCX) and Walking Dead (AMCX).

    Yoku Tudou (YOKU) is like a combination of Youtube (GOOG), Netflix (NFLX) and Facebook (FB) in their having the social component of sharing video's with comments. Additionally, Yoku is creating their own content in house, adding to their library of licensed content and generating advertising revenue and prospects at the same time. Yoku is ahead of Netlflix in this venture, making it less of a "House of Cards".

    In writing this, I think my trying to time the market is still crazy, but buying Yoku is not.

    Disclosure: I am long YOKU.

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Comments (5)
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  • Author’s reply » Resistance close to 18.55 or was it the fear of China's real estate problems at play? Bloomberg story summed up nicely- consolidation of Yoku / Tudou will take time. When it goes up, I expect the stored energy in this stock could fuel a Mars landing and back.
    5 Mar 2013, 11:15 AM Reply Like
  • Author’s reply » They manged to get the price lower, but high volume is telling me another long term story. Smart money is getting in at a better price than me for sure, but more reason to hold fast.
    8 Mar 2013, 05:20 PM Reply Like
  • Author’s reply » Here I go again- bought more call options into the earnings report. Could it be different this time?
    19 Jul 2013, 10:34 AM Reply Like
  • Author’s reply » Nice investors relations video in English-

    19 Jul 2013, 01:26 PM Reply Like
  • Author’s reply » Patiently waiting. If not non-GAAP profitable in 2014, I'll wait until 2015 and beyond for them to start beating expectations- the infrastructure is built and growing.
    14 Nov 2013, 10:30 PM Reply Like
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