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Varchild2008 (83.79)

All Stars DEAD WRONG on (GAME)

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July 08, 2010 – Comments (7) | RELATED TICKERS: GAME

All words/thoughts on (GAME) here are entirely based in OPINION and EMOTION.....

I no longer have money in GAME entirely because I needed the cash to buy my house.   Otherwise I would be accumulating shares of GAME given how cheap it is...ridiculously cheap....

But the funny thing is.... The Stock has stopped being a 5 Star Caps Pick and has been reduced down to a  4 Star Caps Pick..... All Stars are turning against (GAME) due to the prolonged lagging against the S&P 500.

All Stars are short term knee jerk reactors that can't stick with a stock beyond a week in my opinion.

Therefore.... As investors you have to look at Shanda Games from a Fundamentals perspective and you can easily see Shanda Games has a gigantic future ahead of it....

Why????

They recently announced that they are going to introduce a CHINA based "Mochi Games" in much the same vein as www.mochimedia.com  .

Mochimedia.com   is an American founded company that was doing quite well before they were acquired by Shanda Games.....  Shanda Games LOVES their acquisition....  Believe me.... This Mochimedia company is growing earnings/revenue numbers for Shanda Games.... it is a  WINNER of an acquisition.

In fact.... Varchild can testify that he spent $50 last quarter on www.mochimedia.com  because of my addiction to one of their games.

Mochimedia is a website that promotes, markets their advertisement software to Flash based video gaming developers so that they can have a way to earn income..... In much the same way as "Google Ads" this is income for Mochimedia as well as the Game Developer to include the advertisements in the game.

www.pogo.com   for example has Game Advertisements for those who do not subscribe to CLUB POGO.

That is the same approach here with Mochimedia...       And that's not all they do....

They also sell Mochi  Coins  that you can use as Currency for any video game on their website that  sells content for the Coins...   

$$$  for Game Content  is much like XBOX360  DLCs..... It is in fact the same thing as them.

Put it this way...   Bullish on MOCHIMEDIA  =  BUY  (GAME).....  Ignore the All Stars on Motley Fool as they are FOOLs in the worse way..... Your job is to be a FOOL in the same vein as David and Tom Gardner.... And they too would see GAME as a Cash Cow China Gaming Stock set to earn big revenue off of their CHINA Mochi Games strategy  (in my opinion).

7 Comments – Post Your Own

#1) On July 08, 2010 at 6:22 PM, Varchild2008 (83.79) wrote:

Oops!

CLARIFICATION:   Opinions expressed on this Blog are that of a MORON!!!!!!  repeat....  MORON!!!!!!  

Hrm.... that sometimes actually has something worth reading....sometimes....

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#2) On July 08, 2010 at 6:38 PM, blesto (31.85) wrote:

"Your job is to be a FOOL in the same vein as David and Tom Gardner...."

I'm definately not an Allstar, but in their defense it is not their job. It's just a game (pun intended) and yes they game the system (there I go again).

4 stars is still a good rating

Lets see

Quick ratio  2.00   Current ratio 2.10   Not bad at all

Look, Interest expense is 0.00 but they do carry a little debt. I wonder when it is due?

Net Income From Total Operations about 29% to total sales

and about 75% to total income before interest expenses. Not to shabby and as stated before zero interest expenses.

Seeing how the stock price has been beat up and at a real good P/E ratio of 7.80.....

I'm gonna take my nonallstar status self and make an outperform pick right now.

Cheers 

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#3) On July 08, 2010 at 7:37 PM, blesto (31.85) wrote:

P.S.:

You're not a moron, just passionate.

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#4) On July 08, 2010 at 8:42 PM, Varchild2008 (83.79) wrote:

Those who are passionate make the best morons!

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#5) On July 08, 2010 at 9:46 PM, TMFBabo (100.00) wrote:

There are 82 all-star green thumbs and 2 all-star red thumbs.  Maybe only a certain percentage of all stocks can be 5 star stocks or something else, but it doesn't seem to me that very many people on CAPS have red thumbed GAME. 

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#6) On July 09, 2010 at 4:27 AM, Mephysto (< 20) wrote:

Hi everyone,

I too fancied investing in Shanda Game... until I realized that the Chinese company was itself 71%-owned by Shanda Interactive.

 And that's just BAD NEWS from a small stockholder's viewpoint --because there's a (very) slim chance for GAME to ever be taken over by a third corporation... Hence GAME's stockprice's poor performance.

That's why I bet the farm on KongZhong (Nasdaq: KONG) instead... For a while I considered Gravity (Nasdaq: GRVY) but then again, Gravity --a Korean co-- is 59%-owned by Gungho Online Entertainment from Japan... Like Shanda Interactive, Gungho is not a financial shareholder --it's an industrial shareholder that seeks synergy through the linking of several subsidiaries. That means there's a very small incentive for them to spin off their mmorpg division.

 

Greetings from Brussels, Belgium!

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#7) On July 09, 2010 at 5:21 PM, Varchild2008 (83.79) wrote:

@Bullishbabo

That 2 red thumb number is highly misleading as there are tons of All Stars that kinda go in and out of All Star status on a daily basis.... Which I have been doing this year.

So you have to take into account that perhaps some All Star Red Thumbs are bouning a bit between Non-All Star one day to All Star the next.

Nonetheless..... My comment was simply that this reached 5 stars and stayed there and then for no reason dropped back down.  There's no sense in knocking (GAME) back down to 4, 3, 2, 1 Caps stars cause of the S&P 500 lagging it has been doing since IPO.

Shanda Games will reward their shareholders..... stay patient!

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