Thursday, February 24, 2011

Double Trouble

I Had a Bad Day

"You had a bad day, you're taking one down
You sing a sad song just to turn it around
You say you don't know, you tell me don't lie
You work at a smile and you go for a ride
You had a bad day, the camera don't lie
You're coming back down and you really don't mind
You had a bad day"
Well, I had a bad day, at least in the stock market. It was largely driven by two stocks tanking post-earnings, UNTD and IDCC. They both dropped about 10%. I only skimmed the earnings reports. IDCC had certainly gotten ahead of itself, it started the year at $41 and change and rose over $58. I think they still have a great story and will simply be patient (InterDigital Announces Fourth Quarter and Full Year 2010 Financial Results). UNTD seemd to me to have ok numbers, I didn't really understand the drop-off, unless it was their guidance (United Online Reports Fourth Quarter and Full-Year 2010 Results). Again, they seem to be ok (not broken) and pay a decent dividend, so I'll just get my next reinvested purchase a bit cheaper.

Still, it is a bit depressing, though I will try to have a longer term view. The portfolio is lagging so far this year, and I am actually underwater despite the broader indices being up 4% or so.


One company I have been considering for a while is GA (Giant Interactive Group). They are based in China, but are not an RTO and they are a sizeable company ($1.7b). They pay a dividend (about 2.2%) and they rank #66 on my list of the top 200 stocks (Top 200 February 19th 2011). They are part of the online gaming industry (not gambling but interactive games) that seem to be so big in Asia. They are an absolute cash generating machine. I would be interested in people's opinions on this stock. Here is a promising write-up that I read (cheapest stock in China).

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