The net cash of 1.2 billion dollars

chai57753619

Shanda incubator of new companies is still in its early stages
Shanda Morgan Stanley's current rating on the stock to \(Qiu Yue)
earnings highlights

earnings report problems
1) Shanda from other business (including cool, 6, Shanda Literature,[link widoczny dla zalogowanych],[link widoczny dla zalogowanych], board games and electronic games) and 16% sequential increase in revenue,[link widoczny dla zalogowanych], representing a net 22% of revenue, higher than 20% of the second quarter. 2) Shanda fourth quarter revenue is expected to ring up 3% to 5% in three consecutive quarters of revenue decline is expected to occur after the recovery. 3) The net cash of 1.2 billion dollars, more than half the market value of Shanda. This makes Shanda become the largest cash holdings of listed Chinese Internet and media companies.

1) big game MMORPG games and casual games from the number of active paying accounts were down 4% and 10%, mainly due to the low-end users gradual transition to free users, it also enhanced the interaction between players. 2) Shanda's operating margins were down between 6 percent, down 26 percentage points, to 11%, mainly due to the drag of non-game business.

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poor performance

under the DCF valuation method, the value of Shanda $ 44.3 per share, which means that stock prices are still about 11 Shanda % upside. It should be noted: 1) online video subsidiary of Shanda's cool in the third quarter loss of 6, resulting in Shanda's operating margins of 7%. Content due to intense competition and rising costs, cool, 6, will continue in the short term losses. 2) The grand strategy of the network of positive, loss of sales of electronic reader Bambook. The Chinese literature on the Internet for free content will be a grand literary mode of payment adversely affect the reading. 3) Shanda Interactive Entertainment has acquired a lot of content companies, the assets of these companies, but few people too much. These acquisitions will bring the risk of integration, because the need to rely on Shanda's management team acquired the company to implement the company's strategy.
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SAN FRANCISCO Nov. 30 evening news,[link widoczny dla zalogowanych], Shanda announced today its third-quarter earnings. Morgan Stanley research report released later said some of Shanda's new business is still in incubation stage.

The following is the text of the report:
the third quarter, Shanda was 1.4 billion yuan of net revenues, growth of 2% year on year increase of 1%. Operating profit of 1.55 billion yuan, lower than our expected 21%,[link widoczny dla zalogowanych], mainly due to higher operating costs of new business. Diluted earnings per share were 1.68 yuan, down from 2.76 yuan in the second quarter and third quarter of 2009 of 6.18 yuan.