Last up is the most speculative name on our list of cash-rich tech companies: Sohu.com (SOHU - Get Report). Sohu owns some of the most-trafficked Internet sites in China, earning revenue through paid search and advertising as well as online gaming through its Changyou unit. SOHU's $877 million net cash position adds up to 31% of the firm's current share price.
Rising Chinese Web traffic is the big tailwind in play at SOHU. The firm's web properties -- like its search site and video portal -- mirror the efforts of internet companies here in the West. Online gaming is the differentiator, though. And with Changyou making up more than half of SOHU's overall revenues, the demand is clearly there for the firm's games. That gaming arm should help give SOHU some advantages over its larger rivals in the Chinese web market.
SOHU's growth trajectory is rocky -- it doesn't possess an economic moat, but it's generating substantial traffic in all the right areas. Likewise, regulatory concerns from the Chinese government are much more muted for Sohu, which doesn't have the same cultural hang-ups in acquiescing to the government's demands that Western firms have. With momentum starting to turn higher for SOHU in 2014, this cash-rich company could be a big mover in the months ahead.To see these value-centric names in action, check out the Cash Rich Buys portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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