Analysts say investment in Chinese games needs to stay better

Guide: Investment website Seekingalpha today, the Zhangxiaofan of the market researcher, said that China's online gaming stock has performed well this year, attracting the attention of many investors. This paper analyzes the current situation of 8 Chinese online game stocks listed in the United States and discusses the investment strategies of such stocks. The following is the full text: China's online games stock is divided into three levels in the online games industry 8 stocks, Shanda and NetEase in the first camp, two companies quarterly revenue in more than 100 million U.S. dollars. Perfect time and space, swimming and giants in the second camp, quarterly revenue between 50 million-100 million dollars. And letter hypermedia, China Net investment group and nine cities belong to the third camp. The final impact of the ranking is a handful of key games, and the following table is based on my predictions for each company listed in the key games as well as the June 21-27th individual PCU (maximum simultaneous online number). Each company's key game as well as June 21-27th their respective PCU investors are more bullish on large online gaming companies from this table can see an interesting pattern. For all online gaming companies, the higher the quarterly revenue, the higher the P/E ratio. This means the current market believes that the larger the size of the online gaming companies have the opportunity to launch a successful game, and the smaller online gaming companies to grow faster.　　In other words, investors generally believe that large online gaming companies will increase their market share in the future, and the online games industry will become more centralized, which is the reason they are more optimistic about the leading game companies. The leading online gaming company's trading price is close to 52-week highs this year, Shanda, NetEase, perfect time and space and swim 4 of the highest revenues of the online games companies grew 87%, 70%, 89% and 185% respectively, the current transaction prices are equivalent to their 52 weekly highs of 93%, 97%, 96% and 99%. By contrast, the Dow Jones 30 index, the standard and poor 500 index and the Nasdaq Composite index were the equivalent of 71%, 70% and 74% of the 52-week highs. So I think investors who are interested in investing in these four kinds of stocks need to wait for better buying points. (Sean)