"Shanda Interactive, a Chinese purveyor of interactive entertainment and media technology, offered U.S. investors a piece of its video game business, Shanda Games (NASDAQ: GAME)," notes Brandon Clay.

In his Invest with an Edge, he explains, "Shanda Games has its risks but also packs a lot of potential, especially as a speculative China play.

"GAME was one of the most widely-anticipated IPOs of 2009. The buzz surrounding Shanda Games was so intense that the company raised the offering from 63 million to 83.5 million shares just to meet demand.

This post is part of a featured report on stocks in the Chinese online gaming sector.

"China's online gaming market is slated to surge," says Andy Obermueller, an analyst with Street Authority's newly-launched advisory service, Government-Driven Investing.

"In China, internet users understand and embrace the 'come, stay, pay' model; that's where a site allows users to access a few things for free, but they have to pony up for the good stuff.

"This works particularly well with games. One of the leaders in this space is Shanda Interactive Entertainment (NASDAQ: SNDA). Gamers at its site use prepaid cards -- available at more than 320,000 vendors -- to add money to player accounts that can be used to access all of the features of its games.

This post is part of a featured report on stocks in the Chinese online gaming sector.

"We're increasing our bet on Asia through Shanghai-based Chinese gaming company, Shanda Interactive Entertainment Ltd. (NASDAQ: SNDA)," says international stock expert Nick Vardy in The Global Bull Market Alert.

"I expect this small-cap stock to be a solid, risk-return trade, especially if you are willing to endure some volatility.

"First, Shanda operates online games in the People's Republic of China and is a pioneer in the hugely complex role-playing games that people play over the Internet.

One month ago, we featured a special report featuring the favorite China-based stocks among financial newsletter advisors. Since then, the 14 stocks covered in the report have risen an average of more than 15%.

The performance of these stocks -- along with the overall China market -- has far exceeded the 3% gain in the S&P 500 index over the same time period. That report can be viewed here.

Despite these gains, many of the leading advisors remain bullish on China; in particular, several have recently focused on the online gaming sector in Asia. Indeed, Timothy Lutts notes that while the video game market in the U.S. is slowing, the video game market in China is expected to show 20%+ annual growth in coming year.

Much of the attention this week will no doubt be on how the impending General Motors (NYSE: GM) bankruptcy will shake out, as well as the usual economic concerns: Has the housing market bottomed? Will oil prices keep rising? Is the employment situation getting any better? And so on (see highlights of the economic calendar below).

What probably won't get much attention are quarterly earnings, as the earnings season for this quarter winds down. But there are a few reports that analysts surveyed by Thomson Reuters have high hopes for.

Those surprised by the market's strength in recent weeks should be even more impressed with the rebound in China, where both their market and economy have proven among the most resilient in the world.

Global specialist Nicholas Vardy adds, "While the US markets are rising, Asian stocks are on fire." ETF expert Paul Tracy adds, "China funds have screamed to the top of the performance charts."

In large part, this strength is due to the country's stimulus program. Tracy points out, "To combat the sagging global economy, Chinese Premier Wen Jiabao orchestrated a massive 4 trillion yuan ($586 billion) stimulus package.

This post is part of a special report, Global advisors look to China.

Two leading advisors -- both with a noted focus on technical analysis -- look to Shanghai-based Shanda Interactive (NASDAQ: SNDA).

In his Ticker Tape Digest advisory service, Leo Fasciocco focuses on stocks breaking out of basing patterns and cconsiders Shanda a breakout buy.

Focus Media (NASDAQ: FMCN), a Chinese digital advertising company, closed at $10.98. January option implied volatility of 132 is above its 26-week average of 106, according to Track Data, suggesting larger price movement.

SINA Corp (NASDAQ: SINA), a Chinese online media company, closed at $29.24. SINA January option implied volatility is at 63; March is at 70; above its 26-week average of 61, according to Track Data, suggesting larger price movement in early spring.

Shanda Interactive (NASDAQ: SNDA), an interactive entertainment media company in China, closed at $30.33. SNDA January option implied volatility of 66 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Father's Day is around the corner. Why not spend some time looking at the coming earnings and how Dad's Day may have an impact. It is funny to see how many of the companies reporting earnings this week actually have links to Father's Day.

While this column has been obviously bearish of late, there are a few potential winners that may appear, just in time for the big day. Time to stock up on gifts for dear-ole-dad, or get farther away from stocks? You tell me... (by the way, comments and ideas are always appreciated)

Monday, May 26

Markets will be flat. I am certain that stocks on the U.S. Market will close at the exact price they closed last Friday. But what do I know!

Jim Collins, editor of OTC Insight, uses a proprietary quantitative system to isolate high growth and momentum stocks trading at reasonable valuations relative to that growth.

His latest two featured stocks based on these criteria are both China-based companies: Internet search provider Baidu.com (NASDAQ: BIDU) and online gaming firm Shanda Interactive Entertainment Limited (NASDAQ: SNDA).

Collins notes that Baidu's search engine was the most frequently used in China in 2006. Last December, he adds, Baidu announced its intention to enter the Japanese search market, which is currently dominated by Yahoo! (NASDAQ: YHOO) and Google (NASDAQ: GOOG).

In March, he adds, the company launched a limited beta trial of its Japanese language search services, which included web and image search.

For the quarter ended June 30, 2007, he reports, Baidu showed earnings of $0.61 a share, compared with $0.21 per share in the prior year. Revenues, he states, increased 121% to $53 million. The stock, he explains, has a relative strength rating of 99 (out of 100) and garners a B+ for accumulation and distribution.

The9 (NASDAQ: NCTY) implied volatility elevated into 8/29 EPS.

NCTY, an online game operator headquartered in Shanghai, is recently down $0.10 to $38.65. NCTY is expected to report EPS on 8/29/07. NCTY has a market cap of $996 million. NCTY September option implied volatility of 79 is above its 26-week average of 59 according to Track Data, suggesting larger risk.

Shanda Interactive (NASDAQ: SNDA) September implied volatility elevated into EPS.

SNDA, an interactive entertainment media company and operator of on line games in China, is recently up $1.56 to $30.68. SNDA has a market cap of $2.2 billion. SNDA is expected to report second quarter EPS on 8/28. SNDA September option implied volatility of 70 is above its 26-week average of 46 according to Track Data, suggesting larger risk.

NetEase (NASDAQ: NTES) implied volatility of 43 above 26-week average of 36.

NTES, an interactive online community in China, is recently down .10 to $16.33. NTES over all option implied volatility of 43 is above its 26-week average of 36 according to Track Data, suggesting larger price fluctuations.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Monday August 27

• Shanda Interactive Entertainment Ltd (NASDAQ: SNDA) to report Q2 earnings; conference call at 9am.
• Landstar System Inc (NASDAQ: LSTR) to hold Q3 mid-quarter conference call at 2pm.

Tuesday August 28

• Corinthian Colleges Inc (NASDAQ: COCO) to report Q4 earnings; conference call at 12pm.

Wednesday August 29

• TiVo Inc (NASDAQ: TIVO) to report Q2 earnings; conference call at 5pm.
• Novell Inc (NASDAQ: NOVL) to report Q3 earnings; conference call at 5pm.

Thursday August 30

• Freddie Mac Corp (NYSE: FRE) to report Q2 earnings; conference call at 10am.
• Novellus Systems Inc (NASDAQ: NVLS) to hold Q3 mid-quarter conference call at 4:30pm.
• PDUFA Date for Tericia Inc (NASDAQ: TRCA) for Somatuline Autogel for acromegaly.

Friday August 31

• Blyth Inc (NYSE: BTH) to hold Investor Q&A conference call at 2pm.

MOST NOTEWORTHY: Energy Partners (EVEP) and HB Fuller (FUL) led a moderate initiation list Monday as the Dow and Nasdaq moved higher in early trading.

• AG Edwards initiated EV Energy Partners (NASDAQ:EVEP) a Buy and a $22 target, as the firm likes the company's experienced management team, debt-free balance sheet, and low-risk development opportunities.
• Keybanc initiated H.B. Fuller Co. (NYSE:FUL) with a Buy and $28 target, citing low manufacturing cost, portfolio mix and pricing power.
• CE Unterberg initiated Shanda Interactive Entertainment Ltd. (NASDAQ:SNDA) with a Buy and $21 target, as the firm is positive on the company's new revenue model.

OTHER INITIATIONS:

• UBS Investment initiated Ryanair (NASDAQ:RYAAY) with a Buy and a $60.41 target.
• Finally, SG Cowen initiated International Business Machines Corp. (NYSE:IBM) with a Neutral, citing valuation and a lack of traction in its services unit for the rating.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).