Why Aren't Investors Taking This More Seriously?
The ongoing Netease.com (Nasdaq: NTES)/Chinese government/World of Warcraft saga is continuing with Xinhua reporting that the General Administration of Press and Publication might "terminate access to the popular online game" while the Ministry of Culture is saying that the GAPP is "abusing its authority."
Now, I don't necessarily who's right and who's wrong here. What I want to know is this: If you own Netease shares, are you really comfortable being the regulatory sights of the PRC government?
The stock has dropped slightly since this all started coming out, but it's still nearly $40 per share/20x earnings, which seems very high to me given the circumstances.