....Shanda reported another strong quarter with solid upside of more than 6% to our estimates, with strength coming from MMORPG and casual games, as well as advertising and other revenues. This strength is from the existing four games: Mir II, Woool, Maple Story, and BNB, plus some smaller games. The best new promising game, Magical Land, is in open beta now and has scored the highest success of any of Shanda's games so far, promising to provide solid upside to our estimates especially for 2H02. Also, Shanda will launch Dungeons and Dragons in the second half, as well as four casual games (one of them already in closed beta). In other words, the current four-game platform should be a ten-game platform by the end of the year.On Shanda's Game Pipeline
....It is hard to find a stronger pipeline anywhere else in the online game sector in China (or elsewhere), and it is hard to find a more solid business model than Shanda's. Margins keep improving every quarter while the company's operating expenses are becoming smaller as a percentage of revenues.On Owning Shanda Stock
....we feel more confident in our position that Shanda should be a solid holding for China investors, possibly comprising their largest holding.Comment: Read the rest of the note here.