Bear Stearns on The9 - Reiterating Outperform: WOW Economics Healthy for The9

From billsdue (weblog): Bear Stearns Report on The9

Key Points
"REITERATE OUTPERFORM: We maintain our Outperform rating on The9 Limited and reiterate our YE2005 target price of $32, based on a 40x 2005 P/E multiple.

WOW ON TRACK: Preliminary milestones leading up to The9's commercial launch of World of Warcraft (WOW) have been or will soon be met.

POSITIVE NEWS FLOW EXPECTED SOON: We consider the current price level an ideal entry point, and expect positive news flow related to WOW and its Open Beta to catalyze the share price upwards shortly. While end-user demand for WOW remains an unknown, the +1mn applicants for a limited number of Closed Beta accounts lend support to our view that the Open Beta will be exceptionally strong."

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