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The9 (NCTY): how gurus and financial press can miss the point and mislead us: how many years of Word of Warcraft lisence for China does NCTY have? January 25, 2007

Posted by deminvest in China stock, NCTY, Single stocks, stock I own, stocks.

I have great limits as investors, but there are times when I am surprised about how limited the official financial press and some gurus also are.

The9 NCTY was nominated by gurus at fool.com The Best E-Commerce Stock for 2007: The9

I got curious and looked on Google Finance and Yahoo Finance and I fond out 2 main things:

1) more than 99% of The9’s revenue in the most recent quarters comes from famous “World of Warcraft” licensed in exclusive to The9 for China

2) Due to the huge planetary success of “World of Warcraft” this company is obviously having great quarterly Revenue Growth (yoy) of 26.30% and impressing quarterly Earnings Growth (yoy) 70.80%.

3) nobody seems to care about the fact that license agreements usually are limited to a certain number of years. Nobody seems to worry for how many years this license was signed. They tell to us, the people: “Th9… owns the Chinese rights to the world’s most popular on-line role-playing game”, they rate NCTY “outperform”

What will happen of this reseller Vivendi’s software if Vivendi decides not to renew license agreement?

Now let’s play a little game with me… try to find this out, using the Internet and official financial press:

For how many years does The9 (NCTY) have exclusive license for “World of Warcraft” in China? (more…)

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