Shanda Interactive Entertainment Ltd ADR (SNDA)

Price is down over 30% from its high and at a below 10 p/e ratio I think it is cheap.

3/17 in Home Entertainment Software -(79.8 @ A/A+)

Chinese online games. Outperform.

Another Chinese online games play, but that's only a good thing. The demand is unquenchable, and Shanda has shown they know not only how to make a popular online game but also, far more importantly, how to make real money off of those games. They have a 5-star rating from S&P and 12-month target price of $40.

The chinese bubble is not over yet. The stock is growing at extremely strong growth rates and I find it a compelling buy. When earnings come in, if they continue as in the past, I expect the stock to start moving strongly upward.

Infinite market potential.

Kaupa hér

The problem with this company is the games that it makes only appeal to those who cannot afford decent computers to run better games like World of Warcraft. If SNDA's customers cannot afford decent computers then what hope does SNDA have of significantly profiting off of them?

I'm an avid P.C. gamer and I just don't see SNDA making much money any time soon.

The money in gaming is in console systems (where games are 50$ a pop) and subscription based online gaming (which SNDA has been moving away from due to competition from the 500 pound gorilla of MMO's, WoW).

SNDA is fool's gold (no pun intended) for those who do not understand the video game industry.

Company has "street smarts" and good connections with the Chinese government. Knows how to attract players. New format allowing players to buy "avatars" for use in game seems promising. As the CEO, Tianqiao Chen, says (paraphrased): People walk into a mall for free, but usually come out buying something.
Company has many new games and services for subscribers about to come online: DDO is one exciting game. Downloading music and books are two exciting areas just now (or soon) to be available. And IPTV is likely to be licensed to them in the future - shortly, I hope. With the Int'l Olympics scheduled in 2008 (I think), these things should all be available within a couple of years. I'm very hopeful!

It has been building upon the new model and looks like it is paying dividends

SNDA is experiencing great growth (59.43% Revenue growth, PEG = .51) in the past four quarters and will only continue to expand in a vibrant Chinese market of online gaming.

The key to me when considering the growth potential of these gaming stocks is the ability to attract and retain paying subscribers. Shanda had a 12.7% increase in paying accounts over last quarter. Being a long time gamer myself of certain U.S. games, I can testify that more people in a game means more attraction to that game. Interestingly enough, it's much of a social aspect of why people are willing to buy and participate in a game online. Geeks like myself find it much easier to have a life behind a computer screen. The only downside I see is that Shanda's paying accounts are paying out less over that time period. I still expect this to be a great buy at or around $32.

With China exploding onto the internet and growth scene, it's a surefire bet that this industry is going to carry a ton of momentum within the future. Shanda is a bargain to me at a PE of 12.25.

On-iIne gaming is the future and the Chinese kids can't get enough.
Shanda changed their business model to subscription earlier in 2006, but this seems to be working out well so far.

The turnaround has occurred. Should continue uptrend until next resistance level

China will be big in this industry.

Sales Growth = even better than NTES.

Net Profit Post Tax = Even better than NCTY.

Looking for the BIG home run.

when people don't work they play

time to sell.

phenomenal earnings growth rate