By late morning, shares have added 26.6% to $4.19, and 3.2 million shares have changed hands, 13 times its three-month average daily trading volume.
The stock added to gains it made over Friday after a SeekingAlpha article pegged it as the "Netflix of China." Since Friday, shares of the video-on-demand service have gained 64.1%.
SeekingAlpha argued You On Demand's exclusive pay-per-view and video-on-demand license in China will allow it to increase its top line by inking distribution rights with major U.S. studios.Earlier in the month, C-Media completed its $19 million investment in the company, bringing its total investment to $25 million. C-Media now holds three of the seven board seats. "We are excited that C-Media has elected to significantly expand their strategic investment in You on Demand and fully fund the company for the foreseeable future," said You on Demand chairman Shane McMahon in a statement. "In addition to providing us with funding to assist our company at this important inflection point in our corporate evolution, we also look forward to continuing to benefit from [C-Media CEO Xuesong] Song's tremendous experience and success doing business in China, as well as C-Media's mobile industry expertise," McMahon continued. "With C-Media's ongoing support, we will continue You On Demand's mission to provide consumers with the best and highest quality entertainment experiences across a wide array of user-friendly platforms." Must Read: C-Media Completes You On Demand (YOD) Investment
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts