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Varchild2008 (85.30)

Red Thumb This Stock (GAME)

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February 01, 2011 – Comments (2) | RELATED TICKERS: GAME , CYOU , SOHU

DISCLOSURE:  I own 1704 shares of GAME and will not sell GAME this month.

SO?  Why after disappointing earnings reports since the stock debuted post Spin-off from (SNDA) is it that All Star Motley Fool Caps players refuse to Red Thumb (GAME)?

Sure... SBEREN red thumbed it and I *think* at one point he was an all star.....But his pick hath expired into irrelevancy.

What is interesting to note, and I've noted it in the Yahoo Finance Forums, is that there is optimistic momentum heading into the Feb. 28th earnings report for Shanda Games.... A slight EPS average analyst rating up tick for the 4th Quarter could be right...and if earnings show that the optimism was definitely warranted then the stock price could take off....

(CYOU) and (SOHU) reported tremendous earnings... Enough to result in an article saying that SOHU and CYOU are dubbed the Chinese GOD STOCKs that must be worshipped or something....

And I suppose that attitude will persist as long as CYOU produces earnings beats....

Of course like Ford Motor Company the attitude of ever present, ever ridiculous optimism immediately reverses should any quarter become an earnings miss this year for SOHU or CYOU.

So.......There's plenty to consider here..... Do we say (GAME)'s earnings will continue to disappoint as SOHU and TENCENT clean house on the Video Gaming, Internet, etc. story in China?

Or can we say that (CYOU) essentially scored big numbers because it had a tremendous video game product producing those great numbers....and thus...we have DRAGON NEST and HADES REALM II and Legend of Immortal for Shanda Games for Q4 2010 and 2011...

DRAGON NEST has huge support as it gets introduced worldwide... Europe, North America, and South east Asia versions will be introduced before 2011 is out.

So....  If it just takes 1 Smash Hit Video Game Stock to send a Share Price up 15.52% in a single day.... What will happen to (GAME) if Dragon Nest does the same?

P.S.  This is NOT a recommendation to RED THUMB (GAME) but a simple synoposis update for investors to consider if they think they want to Green or Red Thumb (GAME) at the share price it sits right now..... The Stock Price pulled back quite a bit but has since had 3 consec. GREEN up trending stock price days.... Is this a sign of upward momentum into the earnings release at the end of this month?  Or is this trading in a range between $5.80 - $6.50 mindlessly?

All things to consider when deciding to RED THUMB a stock in Motley Fool Caps.... But know this.... ALL STAR RED THUMBS =  ZERO for Shanda Games.   An Unprecendented 5 Star Stock in that regard meaning not many can lay claim to ZERO red thumbs out of nearly 500 total picks.

2 Comments – Post Your Own

#1) On February 01, 2011 at 6:52 PM, chk999 (99.97) wrote:

I tried making picks by running a screen to find stocks that had no All Star underperform calls. It worked ok, but wasn't amazing.

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#2) On February 01, 2011 at 8:17 PM, Varchild2008 (85.30) wrote:

Did you consider how many total picks there were?

Stocks with 12 picks that have no underperforms from All Stars should be taken out I think.

I'd prefer the magic 500 and (GAME) is at 458 total picks right now.

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