Shanda Interactive Entertainment Ltd ADR (SNDA)

pytheian (73.15) Submitted: 5/05/08 5:17 PM : Start Price: $30.00 SNDA Score: -9.12

- PEG'd at .58 with P/E of 13 (vs 1.58 and 44 industry, respectively)
- Trouncing industry on Gross, Operating and Net Margin
- 50% revenue growth strong TTM, actually accelerated slightly MRQ
- +46% ROE & ROI lap industry (both less than 20%)
- No debt

Worried about talent defections? I'm willing to bet that there isn't a shortage of young men in Asia who want to and are able to make video games (definitely not those who want to play them when govt in China and S Korea seeks to pass laws to limit, with young guys dying at computer cafes looking for the enchanted Sword of Omens and the Cuirass of Chastity).

Worried that the games are just not that impressive? Go and play the original Grand Theft Auto (it's actually been made available for free, along with GTA2, by Rockstar games) and you'll begin to appreciate that connecting with the player is more important than technical achievement in this space. Even GTA4 is not considered cutting edge in terms of graphics (at least according to Gamespot.com).

A "Gotta own" for a diversified int'l portfolio.

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