Discussion in 'Stocks' started by NoDoji, Jun 28, 2010.

  1. NoDoji


    I can't find anything fundamentally wrong with this company and there appears to be some serious blood running in the streets of Perfect World. The fundamentals are quite solid as far as I can tell.

    Looking to buy unless someone can provide a sound reason not to.

    This is not a day trade, or a technical swing trade, rather it's a longer term swing trade for the IRAs based on fundamentals and an extremely oversold condition.
  2. Retief


    Interesting fundamentals, it has a PEG of 0.27. So you're saying the market is wrong?

    Why the huge sell off? How come the market isn't respecting the outstanding fundamentals? Are the other market participants too stupid to see the outstanding fundamentals listed at yahoo and finviz? Why has there never been an upgrade of this stock, only downgrades?

    The chart looks like crap. YTD peformance for PWRD -43%. It's been in a downtrend since November 2009. You're calling the bottom here up 4.42% from a 52 week low? OK, you should know where to put the stop.
  3. NoDoji


    No, the market is not wrong and the chart looks like crap. Chinese gaming stocks have fallen out of favor. However, if you compare SNDA and PWRD, PWRD is the fundamental leader. SNDA is not growing earnings; PWRD is, and their earnings and projected earnings exceed SNDA, yet their stock is trading significantly lower.

    I made it clear in my post that this was not a technical trade; rather an investment based on fundamentals, and the purpose of this thread was not to tell me what I already know (I'm a pretty adept technical trader), but to tell if there's something about this company I missed.

    The market has been known to dump fundamentally sound stocks in the past (such as AAPL @ $78.00 despite huge growth through a major economic downturn and never an earnings miss)

    Oh, yeah, the stop. Stops on long term investments are always placed at $0.00. I certainly wouldn't want to be shaken out at $0.01 like those ACN investors on May 6th :D

    P.S., I analyzed CF on its selloff for the same reasons and it bounced 10 points in 2 weeks.
  4. Retief


    Well, excuuuuuuuuuuuuuuuuuuse me. I didn't realize you were such a big swinging dick.
  5. NoDoji


    All wrong, all wrong. Pure PMS in my case :p
  6. Two questions: 1. How many shares are outstanding? 2. How much net cash do they have?
  7. NoDoji


    My stat sheet says 255.3 million shares outstanding, but I can't find info on current cash, just year ending 2009.

    Here's the crazy market (which I know is always right):

    You have AMZN trading at a P/E of 53 and a quick ratio of about 1.0, with 2010 earnings projected to be 2.93 and 2011 to be 3.92. The kindle is nice and all, but it's got competition and there aren't a lot of barriers to entry. The stock is hard pressed to break down $118 a share.

    Then you have PWRD at a P/E of 7 and a quick ratio of 3.0 and superb cash flow, with 2010 earnings projected to be 3.27 and 2011 to be 3.90. The stock is hard pressed to even hold support here around $22.