This column is for investors willing to take more risk and potentially receive more reward.  The stocks mentioned in this column are not recommended to buy or sell.  They're brought to your attention so you can investigate them further to determine if they fit your risk profile.  Most of the stocks will have less than $1 billion of market capitalization, have more volatility than other stocks, and oftentimes no earnings.  And some will have tremendous stories.

May 30, 2008 - Sohu.com (SOHU-NASDAQ) If you're hunting for something in China, maybe a "search fox" can help. Sohu.com (Sohu means "search fox") operates China's leading Web portal and offers communication tools such as e-mail and instant messaging, and more than 30 content channels covering news, sports, business, and other topics. Sohu also operates Web sites devoted to alumni communities, gaming, and real estate. In addition, the company provides Internet access through its Sohu Entertainment ISP and search services through Sogou ("search dog").

In 2001, this stock traded for 51 cents a share. It's now trading at an all-time high of $87. Will this be the Oriental Google? Here's what we know.

Sales last year were $189 million, up 41% from 2006. This year, analysts see $384.6 million and in 2009, $470 million. Net income was $34.9 million in 2007 or 90 cents a share, up from 70 cents a share in 2006. This year, look for $2.53, an extraordinary jump of 181%. Next year, analysts predict $3.35. That's why the stock is trading at $87. Few companies deliver earnings improvements of that magnitude.

There are some concerns. Recently, the Chinese government started an investigation of the company's mapping service to determine if it provided illegal maps. Since that was announced in May, it may take some time to see it resolved. The government has all the power in China, and if they decide a company has done something wrong, or worse, needs to be shut down, the company has no recourse. It's over. How bad this particular event is can not be determined. Time will give the answer. But be prepared for the worst and hope for the best if you're going to buy this stock.

More numbers: There is no debt on the balance sheet. P/E ratio for the trailing 12 months is 65. Using forward earnings of $2.53, the forward P/E is 34, much closer to its expected long term growth rate. There was $160 million in cash as of the end of March. Current assets are over 2 times current liabilities. There are 37.175 million shares giving a Market Cap of $3.29 billion. Average voume per day is 1.872 million shares over the last 3 months. The range on the stock has been a low of $25.26 and a high of $87.93, over the last 52 weeks.

The stock is trading at its all-time high. Earnings are ramping at an extraordinary rate. The Chinese market is only beginning. There's lots of room for growth for this stock. But now the Chinese government is looking into one phase of the company's business. Prudent investors would wait until that has ended before jumping on board this rocket.

- Company Web site: www.sohu.com

- Ted Allrich