Auriga the Grand game stock as a buy

Beijing Time September 9 Evening News, investment bank Auriga in a study in Thursday, said the "Blood Legend 2" problem will be resolved in the fourth quarter, coupled with the "Dragon Valley" strong performance, I believe that Shanda Games (Nasdaq:game) fourth quarter revenue will rise sharply.　　Auriga continued to maintain a "buy" rating for the Shanda game stock, but lowered its target share price from $8 to $7. The following is a summary of the Auriga report: As the "blood Legend 2" continued to be depressed, Shanda's second-quarter results and third-quarter revenue forecasts are lower than the industry average expectations. We believe that the game will take longer than previously expected to enter a stable period. But "Blood legend 2" has bottomed out, is expected to stabilize in the fourth quarter. At present, most of the negative factors have been reflected in the stock, the industry on the "Blood Legend 2" and Shanda games growth potential is also lower. But the grand game is rebalancing the big games, which is a right strategy. In this way, the risk of the game being too concentrated will be reduced, and the growth will become sustainable.　　As a result, we continue to maintain the "buy" rating of the Grand gaming stock, but we have lowered our target share price from 8 to 7 dollars. Revenue is below industry expectations-Shanda's second-quarter revenue was $163.9 million trillion, at the company's expected 162.4 million-dollar to 169.1 million-dollar low, below the industry's average forecast of $165.9 million trillion, in line with our expected $163.1 million trillion. Shanda game in the second quarter, the US depository shares diluted earnings of 16 cents per cent, in line with the industry's average expectations, 1 cents higher than we expected. Large Multiplayer online role-playing game (MMORPG) Active pay account (hereinafter referred to as "APA") is 9.64 million, the average monthly revenue per active paid account (hereinafter referred to as "ARPU") is RMB 35.1 yuan, and the first quarter is RMB 35.4 yuan. Casual games APA is 920,000, below the first quarter of 1.1 million.　　The average monthly revenue per active paid account is RMB 25.8, while the first quarter is RMB 29. The third quarter was expected to fall below the industry average – Shanda is expected to reach $155.7 million trillion to $163.9 million in the third quarter, down 5% per cent to flat, down from the industry's average forecast of 175.5 million dollars (quarter-on-quarter growth of 5.8%). And our expectation is 170.6 million dollars.　　Although the "Dragon Valley" performance is strong, but not enough to make up for the "Blood Legend 2" decline. "Dragon Valley" and "blood Legend 2" stability will stimulate the grand game quarter revenue. At present, the industry's expectations of a grand game is low, do not believe that "blood legend 2" can rebound. But we think that the problem of "blood Legend 2" can be solved. We believe that the negative factors related to second-quarter results and third-quarter expectations have been largely reflected in corporate equities.　　"Dragon Valley" will be a successful game, if the "Blood Legend 2" in the fourth quarter can stabilize, then will promote Shanda game revenue growth. Stock Rating: Continue to maintain the "buy" rating, the target share price from 8 U.S. dollars to 7 U.S. dollars. (Li Ming)