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.

Continue reading China online gaming: Another vote for Shanda (SNDA)

China online gaming: Another vote for Shanda (SNDA) originally appeared on BloggingStocks on Mon, 15 Jun 2009 15:00:00 EST. Please see our terms for use of feeds.

"Although I am not a big fan of either technology stocks or Chinese stocks, bear markets do create opportunities -- such as Sohu.com. (NASDAQ: SOHU), says Jack Adamo.

In his Jack Adamo's Insiders Plus newsletter, the advisor reviews Sohu.com, the second-largest internet search engine company in China.

"In recent quarters, it has made 42% of its revenues from search and display advertising; the rest comes from online gaming and wireless services. Earnings in the September quarter grew by more than fourfold year-over-year.

"With the Olympics over and the economy slowing to an expected GDP rate of 7%, earnings growth at Sohu is expected to slow as well. The last few quarters bear that out. But even in the slowing environment, earnings were up 14% compared to the June quarter.

"For a Chinese stock, this may be considered to be a relatively slow grower, but the price is right. Selling at less than 10-times earnings, you'd be hard pressed to find a better buy among well-established Chinese companies.

Continue reading China 'search' leads to Sohu.com (SOHU)

China 'search' leads to Sohu.com (SOHU) originally appeared on BloggingStocks on Tue, 16 Dec 2008 11:45:00 EST. Please see our terms for use of feeds.

"There are still many years of spectacular growth ahead for China, which should culminate with the Olympics," notes Charles Payne, editor of the top-tier Wall Street Strategies newsletter. Payne is also well known from his weekly appearances on FOX TV's Bulls & Bears and FOX and Friends.

And while he cautions, "You definitely want to be out of that market when the trumpet begins playing the Olympic theme," he currently highlights select opportunities, such as his latest recommendation, NetEase.com (NASDAQ: NTES).

The company -- headquartered in Beijin -- was founded in 1997. Payne notes, "Netease operates an interactive online and wireless community in China, providing Chinese language content and services through its online games, wireless value-added services, and Internet portals."

The firm's online games business, he notes, focuses on massively multiplayer online role-playing games. In order to participate in these online games, users purchase prepaid point cards which he notes are are sold in China through wholesalers, Internet cafes, software stores, supermarkets, bookstores, newspaper stands, and convenience stores.

Continue reading NetEase: An Internet play in China

NetEase: An Internet play in China originally appeared on BloggingStocks on Tue, 20 Mar 2007 10:37:00 EST. Please see our terms for use of feeds.