Last week, Business Week updated its model portfolio of 20 profitable Internet companies it believes have promise. The magazine looks for companies that are "exploiting new trends and shifting the focus away from slow-growth areas". So what Chinese Internet company was added?
Online game operator and developer Shanda Interactive (ticker: SNDA) was added to the index.
Business Week's explanation for the addition:
....Shanda Interactive Entertainment: Shanda (SNDA) is one of the biggest, most profitable Web companies to come out of China, the world's fastest-growing Internet market. And Shanda, which develops and distributes online games, trades at 22 times this year's projected profits. It's the best-performing tech IPO of 2004 -- even better than Google -- and still pretty cheap.More on the Web 20:
Business Week updates the Web 20 portfolio every six months. At that approximate time interval, it drops lackluster performers, and adds new companies it thinks have
promise. Business Week's Web 20 index has surged 21% since August 10, 2004, beating
the 9% gain for both the S&P 500 and Nasdaq composite indexes, and
the 6.5% return of the Amex Interactive Week Internet Index.
Shanda's stock market performance: