People in mainland China love to play games on the
Internet and four Chinese online game stocks are worth watching.
Perfect World (PWRD)
offers several 3D massively multiplayer online role playing games
(MMORPG) with adventure and fantasy themes. The9 Limited (NCTY)
offers its own MMORPG titles and has licensing agreements to operate
many other titles. Netease.com (NTES)
offers a variety of MMORPG titles as well as portal, wireless and
advertising services. Shanda Interactive Entertainment (SNDA)
offers MMORPGs plus chess, board, casual and wireless games.
These stocks have capital gains potential but they can be quite
volatile. For instance, SNDA initially climbed from $15 to $45,
corrected, went back to over $40 and then went all the way back
to $15. Currently the stock is on a very steep upside.
NCTY recently peaked around $52 and is now trading in the mid $30
range. For two years NTES has traded between the mid teen and mid
$20 dollar range. PWRD has traded between $18 and $29 since it went
public in July of this year.
These stocks are best purchased on price dips but beware of buying
them on prolonged price downsides.
Related Articles:
Chinese Internet
Stocks
Chinese Stocks
Many Chinese Stocks are Available to U.S.
Investors
Posted October 5, 2007.
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