Youku.com (YOKU)

[linfs2]

Hi, I am not the only one that question YOKU’s business model, the following articles had more in depth analyses.



http://seekingalpha.com/article/241092-what-should-youku-really-be-worth?source=qp_investment_views

http://seekingalpha.com/article/241416-youku-vs-tudou-vs-the-other-youtubes-of-china?source=qp_article

http://blogs.forbes.com/gadyepstein/2011/01/13/china-ipos-the-short-selling-hype-is-on/?partner=yahootix

If you have money to burn why not donate to the US charity organizations or even US Treasury Dept to reduce US debts. Why donate money (by buying YOKU stocks) to already rich Chinese national coffers?

YOKU
Revenue :43.5 m
Operating cash flow: -23 m
Market cap: 3.87 billions

Would you buy a business that is losing money and burning investor’s cash and no chance in making a profit in the next few years with a market cap of almost 4 billion dollars? That is totally insane. I smell dot.com era coming back again.

YOKU is losing money in the foreseeable future; it may take many years before they’ll make a dime, if ever. Anybody familiar with the Chinese Stock market won’t touch YOKU with a 10 foot pole. Only the gullible American investors can be misled into buying YOKU stocks. I bet GS and other hedge funds are starting to short YOKU stocks behind the scene.

Recent stock prices were pumped up to $50 and quickly dropped to $28, then pumped to $42 and dropped to $37.5 today all within a month period. So American investors be aware and look down below, very dangerous.