PWRD is now trading under book value again...given the headquarter buiding in booked at cost not market. Q3 revenue will grow at least 20% Q on Q and another 20% in Q4. all additional revenue will go to bottomline as long #$%$&M maintain at Q3 level which is at high level. PWRD can make 80cents per share in Q3 and$1 in Q4....
While I'm long PWRD, I just don't see that kind of growth. They grew revenues 10% last quarter and guided 10-15% this quarter (analysts expecting around 13%), but 20% sequential growth the next two quarters is asking a lot. Their two new games would have to hit blockbuster status fairly quickly and I just don' think that 's a given.
It's interesting Citigroup just downgraded CYOU, and one of the reasons cited was lower interest in players for gaming. My thinking is it was a TLBB thing, and nothing to do with the general gaming tone in China.
But PWRD is hitting on all cylinders at the moment, as it looks like all the money they spend the last couple years (and the resulting share price hit....50 to 10) if finally starting to hit pay dirt.
In a few weeks we shall see.
I imagine launching swordsman online and zhu xian 3 expansion would have put a bit of pressure on TLBB. PWRD is spending crazy money on advertising though, if you do any baidu searches for any games their ads are always on the 'adwords' to the side. I just hope they are all not getting into a spending war which only helps the advertisers. Not much has been mentioned about the Pwrd tv box they are launching as well as the purchase of console gaming sites and stores. I am surprised so little of the recent news has not been published here.