~PW current situation
I am
not a economist, nor am I a high end investor. But in the times we live in all should be learning about how the world market works. All be it at times it seams to be run by Voodoo, and chaos theory. In the link i provide below from PWE's page i want you to first look at the top left corner to the
Yahoo FInace for PW
there is the common stock market jagged line that most expect And as you may note the traded value of PWE has halved form May `11 to present day. The estimated total value of the company is 320M and many will say that is a lot, wait for the but. It has a lot of games it is currently supporting, all MMO's
"Perfect World, Legend of Martial Arts, Perfect World II, Zhu Xian, Chi Bi, Pocketpet Journey West, and Forsaken World; Hot Dance Party, a 3D online casual game; two 2.5D MMORPGs, namely Battle of the Immortals and Empire of the Immortals; one 2D turn-based MMORPG, Fantasy Zhu Xian; and one 2D real-time MMORPG, Dragon Excalibur"
So 11 flagship titles, most of which are 3d MMO's that have multiple servers and make up a large majority of there market. Also you will not that games like Neverwinter, Championes Online, and Star Trek Online are not listed. and despite some digging other than some vanilla press reports about one attaining Cryptic and STO's F2P launch PW seams to be keeping what it views Cryptic on the DL.
Before you get mad there is most likely a good excuse in that PW is mostly a eastern based company. its American projects is maybe only 5%-10% of there total investment strategy which in its self is a small percent of that total 320M I mentioned earlier.
~what this means to us
PW is in a state of loss, they are losing more they they are getting in, the short bitter truth of the matter is they despretarly need to expand. It is the truth of survival whether it is Government, Business, or Personal, at some point you will exhaust the resources where you are currently residing and must expand. Think of the Romans.
So by opening up to the American market they are hoping to get a shot in the arm that will turn a profit in their investments but secondly and
more importantly to them get American and European investors on board to further finance there company.
So now we see things like Grab bags and
Character@Handle has unlocked new item scams. However it will only get worse as they are testing the water.
What is likely to come is yes the game will be advanced as it goes along but on the trad off we are going to see it more and more like a PW social game, Its only a matter of time till a Doff mission completed comes back and a message pops up saying
Your officer has returned form assignment. post to your Facebook wall to share the XP with your friends
now don't get me wrong, pw is not circling the drain and are passing despite the tough economy but i hope this sheds some light on why they act the way they do.
Comments
-edit fixid now
2nd Q Net Income AtCS: $49 million
3rd Q Net Income AtCS: $22.5 million
again im no econimist (RTGDM Butters:p)
Profitability
Profit Margin (ttm): 29.47%
Operating Margin (ttm): 32.87%
Management Effectiveness
Return on Assets (ttm): 12.37%
Return on Equity (ttm): 25.01%
but i don't understand why they would be underselling there stock