Shanda Games (GAME): IPO Spins Off from Chinese Interactive Company


By Paul Goodwin, Analyst and Editor of Cabot China & Emerging Markets Report
From Cabot Wealth Advisory, 11/5/09. Sign up for free Cabot Wealth Advisory e-newsletter

This stock pick is a new initial public offering from China that has a great pedigree. It’s Shanda Games (GAME), the revenue-producing portion of Shanda Interactive Entertainment (SNDA) that was spun off from the parent company on September 27.  

Shanda has been around for a while, offering a growing lineup of online games, all the way from casual time-wasters to immersive MMORPGs like Dungeons and Dragons Online. It’s not clear why Shanda Interactive wanted to kick Shanda Games out the door.

But after a post-IPO droop that pulled the stock down from 12 to 9, GAME has shown some life, jumping back on top of its 25-day moving average.

Like a racehorse with good breeding, GAME is an interesting bet on the popularity of online games in China because it has the experience of Shanda’s long history behind it. It will bear watching.

By , Analyst and Editor of From Cabot Wealth Advisory, 11/5/09. This stock pick is a new initial public offering from China that has a great pedigree. It’s Shanda Games (GAME), the revenue-producing portion of Shanda Interactive Entertainment (SNDA) that was spun off from the parent company on September 27.   Shanda has been around for a while, offering a growing lineup of online games, all the way from casual time-wasters to immersive MMORPGs like Dungeons and Dragons Online. It’s not clear why Shanda Interactive wanted to kick Shanda Games out the door. But after a post-IPO droop that pulled the stock down from 12 to 9, GAME has shown some life, jumping back on top of its 25-day moving average. Like a racehorse with good breeding, GAME is an interesting bet on the popularity of online games in China because it has the experience of Shanda’s long history behind it. It will bear watching.


Paul GoodwinPaul Goodwin
Emerging Markets Specialist, Analyst and Editor of Cabot China & Emerging Markets Report

A researcher and writer for over 30 years, Paul Goodwin has been a member of the Cabot investment team and editor of Cabot China & Emerging Markets Report since 2005. Under Paul’s stewardship, Hulbert Financial Digest rated Cabot China & Emerging Markets Report the number-one-rated newsletter of 2006 with a 78.6% gain for the year, the number-one-rated newsletter of 2007 with a 74.1% return, and the top-performing investment adivsory for five years with a 17.9% annual return.