NEW YORK (TheStreet) -- You on Demand (YOD) continued its surge on Tuesday to a one-year high of $7.35 with much higher volume than normal, but the stock plunged in the late afternoon to close at $5.07, a 9.79% or 55-cent decrease from its previous close of $5.62.
The stock had a volume of 20,367,714, more than 58 times its average of 349,553. The stock had a low of $4.87 for the day and has a one-year low of $1.12.
On Friday, a SeekingAlpha article called You on Demand the "Netflix of China." The site posited that You On Demand's exclusive pay-per-view and video-on-demand licenses in China could lead to an increase in its top line by signing deals for distribution rights with major U.S. studios.
Last week, C-Media completed its $19 million investment in You on Demand to bring its total investment in the company up to $25 million. C-Media now also holds three of YOU's seven board seats. Two board members, Michael Jackson, the former chairman of Universal Television, USA Entertainment, and CEO of UK's Channel Four, and Michael Birkin, the former CEO of Omnicom Asia, resigned to allow the representatives from the Beijing-based company to join YOU's board.
"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.
Must Read: You On Demand (YOD) Surges on Heavy Volume
TheStreet Ratings team rates YOU ON DEMAND HOLDINGS INC as a "sell" with a ratings score of D-. TheStreet Ratings Team has this to say about its recommendation: