By Frank Voisin 4/8/11
BTC Impex, based in Kyiv, Ukraine, is run by Volodymyr Khmurych, a CFA Charterholder and member of the CFA Ukraine Society. Volodymyr
takes a generalist approach with no focus on certain industries and sectors with specialization in value stocks. Top down analysis of industries followed by bottom up fundamental analysis of the individual companies with the purpose of identifying fundamentally strong and weak companies and relatively under- and overvalued securities.
Volodymyr manages Covestor’s Long-Short Generalist portfolio, which seeks
to profit from both the relative out-performance of long-holdings and the under-performance of the short holdings.
Currently, this portfolio is long Spartan Stores (Nasdaq: SPTN) and Target (NYSE: TGT), and short Village Super Market (Nasdaq: VLGEA) and JC Penny (NYSE: JCP). Volodymyr recently shorted SOHU.com (Nasdaq: SOHU), an Internet company in China that provides news, information, entertainment and communication. The Company’s business consists of advertising, online game and a wireless business.
Last year, the company was the subject of speculation regarding a potential takeover:
Takeover rumors are swirling around Sohu.com, and upside call buyers are stepping in.
OptionMonster’s tracking systems detected the purchase of more than 4,100 September 55 calls … Volume was almost twice open interest in the strike.
Sohu.com’s shares rose and are up 19 percent in the last three months. The Chinese Internet stock has been moving sideways for the last two years and is still about 40 percent below where it peaked in May 2008.
More recently however, Zacks Equity Research maintained a neutral rating on SOHU:
We maintain our Neutral rating on Sohu.com Inc.. Although Sohu continues to face cut-throat competition from NetEase.com Inc. (NTES) and Take-Two Interactive Software Inc. (TTWO), we believe that its promising games portfolio and the continued popularity of Changyou.com Ltd. (CYOU) games will drive profitability over the long term.
Sohu is expected to benefit from its strength in online games, online video growth, promising games portfolio and China’s growing online advertising industry. The company expects increased advertising spending in 2011.
Although results improved, the company witnessed a steady increase in operating expenses due to an aggressive investment strategy, which we fear could limit the earnings growth and pressure margins going forward. Moreover, recent delays in game launch and intense competition could further pressure performance.
