Based in Beijing, Changyou is an online game developer and operator.
In November, Changyou announced it was buying a majority stake in communications company Raidcall for $50 million. The platform is used for real-time audio group chat during online games.
"With this transaction, Changyou offers gamers a more comprehensive selection of products and moves forward in its plan to develop a platform business," Changyou Co-Chief Executive Officer Dewen Chen said in a statement.
We can always find some names that are moving counter to the market trend, and some of the Chinese names are showing good relative strength. Changyou. Com ( CYOU:Nasdaq), a spinoff from Sohu.com ( SOHU:Nasdaq) a few years back had a tremendous week, rising more than 15% on very strong turnover.
The moving average convergence divergence (MACD) just confirmed a buy signal last week.
As the markets were hammered by 3.5% or more late in the week, this stock actually rose over 10% in that timeframe. That is very impressive strength. The 200-day moving average looms large just ahead at $24.4, so that may be where the stock stalls. A pullback to the 20-day moving average around $21.4 might be a good place to enter.
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Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate CHANGYOU.COM LTD as a Hold with a ratings score of C. COM LTD (CYOU) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
You can view the full analysis from the report here: CYOU