NetEase.com, Inc. (ADR) (NTES)

fogman24 (99.93) Submitted: 8/23/06 10:19 PM : Start Price: $17.09 NTES Score: 34.31

Fear of communism aside, this is a great company to own. Ever increasing margins, huge cash hoard, and a diversified revenue base are only a few things that make this company a great investment. Plus, it's in the early marketing cycle phase for more than one of it's online games.
Sure one day it may follow Shanda and go to a play-for-free model (and I'm still not sure if that is a bad thing once the game's popularity starts to fade) but unlike Shanda, Netease doesn't live or die based on online gaming revenue. Not that a decline wouldn't hurt but let's face it games are cyclical so there is always the chance if new games are slow to market or don't garner interest.
In Lord of War, Nicolas Cage has a line that goes like this. "There are over 550 million firearms in worldwide circulation. That's one firearm for every twelve people on the planet. The only question is: How do we arm the other eleven?" Love that movie, just crazy! Don't know the exact market penetration for online gaming in China, but I'd be suprised if out of their over one billion population 40% have access to a computer. If so, how do we get the other 60% online?

Report this Post Replies: 0 | Reply