Look Before You Leap into the DGI IPO: Watch out for these 4 Big Risks

by Louis Basenese, Oxford Club Senior Analyst

Jim Cramer’s sounding his obnoxious “Buy! Buy! Buy!” on this week’s Digital Globe (NYSE: DGI) IPO – a provider of high-resolution satellite imagery used for defense and consumer location-based applications (i.e. - Google Maps and Microsoft Virtual Earth).

I’m not saying the DGI IPO lacks the potential to rocket out of the gates. The performance of other recent IPOs – Changyou.com (Nasdaq: CYOU) and Rosetta Stone (NYSE: RST) – suggest underwriters are intentionally under pricing deals to get them out the door. In turn, investors are reaping the rewards. The stocks are up 86.3% and 63.7% from their respective offering prices.

However, you need to look beyond the

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For Immediate Release

Chicago, IL - May 6, 2009 - Zacks Equity Research picks Sierra Wireless (SOHU) as Bull of the Day and CenturyTel (CTL) as Bear of the Day. In addition, the analysts at Zacks Equity Research discuss the latest on Citigroup (C), Bank of America (BAC) and Morgan Stanley (MS).

Full analysis of all these stocks is available at: http://at.zacks.com/?id=2678

Bull of the Day

Sohu.com, Inc. (SOHU) is the second-largest Internet portal and one of the most well-known online brands in China. Sohu's pipeline for its new online games remains strong and is expected to drive meaningful growth in late 2009 and 2010.

The company spun-off part of its gaming division Changyou.com via an ADS offering, which is expected to increase its user base and help gain shares in the MMORPG (massively multi-player online role-playing game) market. We are also encouraged by the company's growing cash

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Sohu.com, Inc. (SOHU) is the second-largest Internet portal and one of the most well-known online brands in China. Sohu's pipeline for its new online games remains strong and is expected to drive meaningful growth in late 2009 and 2010.

The company spun-off part of its gaming division Changyou.com via an ADS offering, which is expected to increase its user base and help gain shares in the MMORPG (massively multi-player online role-playing game) market. We are also encouraged by the company's growing cash balance as well as its debt-free balance sheet.

We believe that the current stock price does not fully reflect the company's intrinsic value. Concerns related to online ad spending, as consumers remain cautious in their spending. We maintain our Buy rating on the shares of SOHU and raise our six-month target price to $75.00. Zacks Investment Research