HaavBline

Chinese Online Gaming Stocks: Wait for a Better Entry Point

Good article.

Changyou.com (CYOU) is worth watching. It was a spin-off from Sohu, has a hot game in TLBB.

CYOU owns exclusive rights to develop games based on TOP Chinese Wuxia novelist Jin Yong novels which have the proven popularity for two generations in Asia. Jin Yong's major novels had been made (and remade) into wuxia movies and TV series multiple times and never lost popularity. That's more than J.K. Rawling can claim at this point.

That Changyou can developed Jin Yong's novels into popular on-line games and still have exclusive rights to turn two other Jin Yong novels into on-lin games in the future should be a strong positive for this company.

Changyou's IPO Banks Heavily on One Single Game

This is a good report. Yet it seemed to have attracted some clueless readers.

A company spinned off a division that has seen high growth, but the risk of lack of future growh is clearly there, so the P/E ratio at IPO is valued accordingly. The on-line gaming companies business model targets Chinese teenagers who are all single childs, their consumption behavior has proven un-cyclical, and SOHU has been on the Nasdaq for almost a decade and a quality company.

Francisco Martin: What does this tell you about China's "massive manipulation"?

Moresby: If this is what you think about your accestor, why do you even bother to read, let alone comment, about these articles?

Splashing buckets of red paint indescriminately does not make a good investment strategy. One would think Seeking Alpha readers are a little more sophisticated than that.