2008年5月20日 星期二

Correction in Chinese game stocks overdone

Just stopping service for the 3 days grief period does not warrant a 10% drop in market cap. This is just an excuse to sell after the great rally last month.

NCTY has a very result, better than consensus, like the other game stocks. The stock is up like 9% after market. I think the rally can go on. Their players are usually richer and live in cities and hence will not be affected by this earthquake. Other companies are mainly using free-to-play model, which make most data like PCU, ACU useless. The impact to them is harder to estimate.

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