Colony Northstar May Have Been Pushed Lower By Selling From ex-Northstar Executives

Posted on by John Sheehy

Colony Northstar shares have fallen sharply in recent weeks (-18% YTD).  I believe the selling pressure comes from ex-Northstar executives.  The existing share buyback plan was largely completed by November and had little remaining capacity to take advantage of the falling price. In conjunction with the merger Northstar executives negotiated the following equity grants to … Continue reading Colony Northstar May Have Been Pushed Lower By Selling From ex-Northstar Executives

China Bears Now Critically Endangered

Posted on by John Sheehy

China is huge opaque and complex.  While the economic potential of 1.3 billion hard working consumers has always been evident, investors have usually been skeptical about the country's financial markets.  Few were willing or able to challenge the prevailing wisdom that a crash was right around the corner. Pessimism provided a convenient rationalization for ignorance, … Continue reading China Bears Now Critically Endangered

Sohu Valuation enhanced by successful Sogou IPO and potential Changyou privatization

Posted on by John Sheehy

Successful IPO of the Sogou search business clarifies the $1.5Bn value of Sohu's retained 33% stake ($39/share of SOHU) Possible privatization of the Changyou gaming business would deliver $1.4Bn of net cash before tax ($35/share of SOHU) at the unfair preliminary offer price or $1.8-3.2Bn ($45-$82/Share of SOHU) at fair value Sohu has minimal debt, … Continue reading Sohu Valuation enhanced by successful Sogou IPO and potential Changyou privatization

Changyou’s Buyout Price Should be Raised to at least $53

Posted on by John Sheehy

2/1/18 Update: Liquid Assets (cash+investments+loan) at 12/31/17 were $1127mm or $21.06/ADS.   Chairman Charles Zhang offered to acquire all outstanding shares of Changyou at a price of $42.10/ADS The offered price is significantly below the average valuations of competing companies (27.7 P/E for US/HK listed and 36.9 P/E for China listed) The offered price does not … Continue reading Changyou’s Buyout Price Should be Raised to at least $53