It’s Time To Re-Enter Online Game Sector: Auriga

According to Auriga, “The online game sector was one of the best performers post the 2008 worldwide financial crisis; however, it has not been performing well in the last several quarters.” “We believe there are several reasons: 1) investors took profits and rotated out of the game sector; 2) fundamental changes in the market place and game companies’ internal adjustments; and 3) expectation of new regulatory game industry policies, which was viewed as a hindrance to growth. However, we believe all these factors are fully reflected, and the game sector is entering a new era and ready to take off again. In addition, we believe the game sector’s deep discount to its growth rate, other internet companies, as well as U.S. game businesses provides investors with a margin of safety for their investment,” the analysts add. “Among all the game stocks, we believe Shanda Games Limited GAME could be a turnaround story, NetEase.com Inc NTES is attractive with a short-term catalyst and strong pipeline from Blizzard, and Perfect World Co Ltd PWRD presents a good potential with its strong R&D capability,” Auriga mentions. More Analyst Ratings here