Brean Murray Comments on China Online Gaming Stocks: GA & KONG Remain 'Top Picks'
GA Hot Sheet
Rating Summary:4 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 82
Brean Murray comments on China Online Gaming stocks:
Brean analyst said, "The online gaming industry remains pretty healthy, showing approx. 7% sequential growth in Q4'09....Consistent with last quarter, we are seeing a leveling off of ARPUs in the games...We believe the online game industry in China is facing a fundamental design change...Though we are recognize the short-term challenges for the space, we also believe the recent broad sell-off and multiple contract for the group may be limiting further potential for these stocks to decline, and consequently the contrarian investors may opt to start adding to positions in the group."
Brean analyst names Giant Interactive Group (NYSE: GA) and KongZhong Corporation (NASDAQ: KONG) as 'Top Picks'. Believes Perfect World (Nasdaq: PWRD) and Changyou.com Limited (Nasdaq: CYOU) is fairly compelling at current levels. Remains fairly cautious on NetEase.com (Nasdaq: NTES), Shanda Interactive (Nasdaq: SNDA) and Shanda Games (Nasdaq: GAME).
Brean analyst said, "The online gaming industry remains pretty healthy, showing approx. 7% sequential growth in Q4'09....Consistent with last quarter, we are seeing a leveling off of ARPUs in the games...We believe the online game industry in China is facing a fundamental design change...Though we are recognize the short-term challenges for the space, we also believe the recent broad sell-off and multiple contract for the group may be limiting further potential for these stocks to decline, and consequently the contrarian investors may opt to start adding to positions in the group."
Brean analyst names Giant Interactive Group (NYSE: GA) and KongZhong Corporation (NASDAQ: KONG) as 'Top Picks'. Believes Perfect World (Nasdaq: PWRD) and Changyou.com Limited (Nasdaq: CYOU) is fairly compelling at current levels. Remains fairly cautious on NetEase.com (Nasdaq: NTES), Shanda Interactive (Nasdaq: SNDA) and Shanda Games (Nasdaq: GAME).
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