[these guys must be short on these stocks<g>]-- Zacks.com Announces That Ian Wyatt Highlights the Following Stocks: Netease.com, Shanda, and Baidu.com
Ian Wyatt, editor of the Growth Report newsletter, says investors are rightly concerned about the overly protective Chinese government. Learn about Netease.com (Nasdaq:NTES), Shanda (Nasdaq:SNDA), and Baidu.com (Nasdaq:BIDU). Click here for the full story exclusively on Zacks.com: at.zacks.com
Highlights from the September 23 Featured Expert column by Ian Wyatt include:
Last week the Chinese government announced plans to deter gamers from extensive game playing. The government is concerned about long-term play sessions in which a player would be involved in a roll playing game for six, twelve, or even over 24 hours. While China gaming companies such as Netease.com (Nasdaq:NTES) and Shanda (Nasdaq:SNDA) have been in the middle of a multi-year growth spurt, investors are rightly concerned about the overly protective Chinese government putting the nail in the coffin of profitable online gaming. Since Chinese gaming companies charge based upon the time a game is played, it is obviously in their interest to keep players playing for long periods of time, and as often as possible. This is something the Chinese government does not want.
Turning to China search, Baidu.com (Nasdaq: BIDU) shares have taken it on the chin these past couple weeks, falling from $120 on November 14 to $79 and change where shares trade today. Shares of Baidu.com went public at $27 on August 4.
Last week, Baidu.com IPO underwriters Goldman Sachs and Piper Jaffray took shares to the woodshed, initiating coverage with "Underperform" ratings. Goldman Sachs initiated coverage with a fair value price of $27 on Baidu shares. Meanwhile, Piper analyst Safa Rashtchy commented, "Baidu's current stock price has far exceeded even the most aggressive valuations and is distinctly 'off the chart,' in our view." Piper's $45 share price target represents a multiple of 27x 2007 EBITDA, plus cash.
Source: Business Wire (September 29, 2005 - 6:00 AM EDT)
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