Why Qihoo 360 Soared
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Qihoo 360 (NAS: QIHU) soared by as much as 27% before closing out the day with a 17% gain after auditor Deloitte Touche Tohmatsu signed off on its books.
So what: Earlier this month, shares crashed when a Forbes article questioned the company's financials and even suggested the possibility of fraud in Qihoo's financials. Investors are all too jittery with Chinese companies nowadays, but the company had quickly responded at the time and defended itself.
Now what: The company has filed its audited annual report with the SEC, with the auditor consenting that Qihoo's financial statements fairly present the company's financial position in all material respects, helping to alleviate fears of cooked books. In light of the stamp of approval, there was probably a good amount of shorts getting squeezed out that were betting on the worst.
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