Bear Stearns reports on Shanda and The9: WOW (World of Warcraft) potential blockbuster in China
Bear Stearns initiated coverage on The9 with an outperform rating.
They estimate revenues to grow from $5.0 million in 2004 to $50.2 million in 2005 and US$123.8mn in 2006.
From Bear Stearns Equity Research:
"The9 will be releasing four games in2005, chief amongst which is WOW. In our assessment, WOW has the potential to become a blockbuster in China,based upon the initial responses in both the U.S. and Korean markets. We expect WOW to be launched in June2005, and to break into the top five in China (based on user base) by year-end."
A Note from China Net Investor: Bear Stearns & Co. was The9's lead underwriter for the IPO
Bear Stearns also Bullish on Shanda
From James Rhee, Bear Stearns Equity Research:
"We admire Shanda for proving the skeptics wrong in 2004 as the company outperformed even our bullish expectations. We expect Shanda to maintain its market leader spot in China's booming online gaming market going forward."
Bill Bishop (Co-founder of CBS MarketWatch) provides a link to both reports in his weblog (Thanks!): Report on The9 Report on Shanda