And that is rare. All the major analysts are saying BUY.
Earnings upgrade from Morgan Stanley. The shares were raised from equal weight to overweight, with a concomitant price target increase from 19.70 to 30.00.
Morgan cited strong mobile game performance as a near-term catalyst, along with their expectation of increased guidance following Tuesday morning's earnings release. Longer-term, Morgan Stanley said that Perfect World should benefit from potential restructuring with higher efficiency.
It looks like PWRD stock movement is in tea cup configuration.
Investopedia explains 'Cup and Handle'
A couple points on trying to detect cup and handles: Length - Generally, cups with longer and more "U" shaped bottoms, the stronger the signal. Avoid cups with a sharp "V" bottoms. Depth - Ideally, the cup should not be too deep. Also, avoid handles which are too deep since the handles should form in the top half of the cup pattern. Volume - Volume should dry up on the decline and remain lower than average in the base of the bowl. It should then increase when the stock finally starts to make its move back up to test the old high. Retest (of old high) - doesn't have touch or come within a few ticks of old high. However, the further the top of the handle is away from the highs, the more significant the breakout needs to be.
earnings weren't so hot. came from cutting costs instead of increasing revs
Revenue was $149.6M vs $150M, missed by $400K or 0.27%. I wished all my other investments would miss by that much.
I hope so . Earnings were above with revenue just below. Any word on any forward stuff? Thanks.
up the next day. This market is crazy thats for sure. The same BS with Aspen Tech and that went to low 40s after earnings than the next few days after its hte mid 43.00s
Morgan Stanley just recommended a 15 day buy because they think both earnings and outlook are going to be very, very good.
This is a solid company with great potential but gonna have to be patient. Rev growth just isnt there yet. I'll buy more under 20.
PWRD is attempting to buy Digital Extremes, makers of Warframe.
The offer was made early July 2014 and DE has 45 days to respond.
It looks like cross gate is off to an excellent start in china. #3 grossing on ipad, #6 grossing on iphone. Pwrd titles holding #s 3, 6, 11 on the ipad to grossing titles chart.
Mobile market is highly fragmented, but this is a good sign. Data from App Annie
I think the console product announcement they made is a bit misleading. From everything I have read they are not actually producing a console themselves. They have basically partnered with a couple of different companies and agreed to produce software for their android style set top box 'consoles'. pwrd is not risking capital in producing hardware, merely agreeing to port (and pre-install) software on these units. I think with one of them they are modifying the OS (basically skinning it). So i guess you could call this a joint venture, but they are really only making the game software which is a much lower risk (and modifying open source android). They will also develop for xbox one in china and I assume PS4 when it launches. This is why they bought all of those 'tgbus' console game websites. There are 10s of millions of console users on ps3/xbox already in china (illegally) and they want to capture the legal ones for the next generation. we should know in the next 30 days if the digital extremes purchase goes through and i'm sure we will hear way more xbox one announcements soon from pwrd. (planning on launching 3 games)
It looks like pwrd is making some more moves to enter the console market. Trying to buy digital extremes (warframe, co developed unreal tournament). I would imagine this is done so they can gain an experienced team on the console side with a hit western game, port of over to china and keep the momentum going. Mobile seems to be going quite well in china, mmo seems to be slipping as usual but it shows this new ceo might know what he is doing! (with recent aggressive shift to mobile and console games).
A potential negative for some here is that i suspect we may not get a dividend this year. They just made a pretty big investment in a new development center in Chongqing. And for the digital extremes purchase they had to partner with sumpo foods, which means they either paid a hefty amount for digital extremes, or they are out of money, or both. Either way with the physical office properties they own, the digital game properties and cash coming in, pwrd is pretty cheap with some potential huge upside if they can ever make a big hit (which they can't seem to do).
One day we will see $40 again. Hopefully by November.
US companies cant produce gross margins of %70, yet PWRD does and gets slammed for it. USA is just jealous of china companies.