Perfect World Co., Ltd. (PWRD)

jeffaim (73.15) Submitted: 5/21/08 3:24 PM : Start Price: $26.11 PWRD Score: 15.95

Moving from watchlist to real list now that the downtrend seems to be reversing/correcting. My watchlist thoughts are below:

Pitch by: jeffaim 5/19/08 1:36 PM
Chinese MMORPG - beat analyst extimates and down 10% today for some reason. WTF?

Reply: jeffaim 5/20/08 12:37 PM
"Shares of Perfect World (PWRD), a Chinese online game developer, plunged 12% after the company beat Wall Street estimates for the first-quarter, but lowered its second-quarter revenue forecast due to the suspension of online gaming services for three day as part of a national mourning period for earthquake victims. The company said net income jumped 295% to $22.6 million and diluted earnings per American depositary shares were 40 cents, vs. Wall Street estimates of 35 cents. First-quarter revenues soared 247% to $43.2 million, vs. estimates of $39.39 million. American depositary shares of Perfect World, which trade on the Nasdaq, fell $3.99 to $27.31." -thestreeet.com

and down another 5% so far today. really? lost revenue from 3 days offline is going to take away 15% of a company's valuation? doesn't sound like folks following this one are in it for the long term. hopefully i'll have a chance to do some due diligence and figure out a rudimentary valuation for this company, but if not I may need to pick it on the a hunch, which sadly is how many of my fool portfolio picks were entered

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