Perfect World Announces Share Repurchase Program

by: Trader Mark October 15, 2008 | about stocks: PWRD    
Trader Mark

Trader Mark

About this author:
Become a Contributor Submit an Article
  • Font Size:
  • Print

We don't currently own Perfect World (PWRD) because the market, in all its wisdom, has deemed that the youth of China will stop playing video games, because Americans can't pay their mortgages. Perfect logic.

But on Monday, the company announced the type of stock buyback program we like - both material in size, and with a firm timeline. At "up to" $100M over the next year, this will take just under 10% of the shares off the market at current market capitalization of under $1.2 billion (if it is completely utilized). 

Perfect World Co., Ltd. (Nasdaq: PWRD - News;  "Perfect World" or the "Company"), a leading online game developer and operator in China, today announced that its board of directors has approved a share repurchase program.

The board has authorized Perfect World to repurchase up to US$100 million of its own American Depositary Shares ("ADSs") during the period from October 2008 to October 2009. The repurchases will be made from time to time on the open market at prevailing market prices, in negotiated transactions off the market, in block trades or otherwise.

I would like to get back into this name at some point in the future when markets improve.

Disclosure: none

Related Articles

This article has 1 comment:

  •  
    Oct 16 04:39 AM
    nah, they are too expensive right now. all the chinese game companies were buying their own stock after the big fall happened, and after they finished buying their stocks fell another 25% or so.

    I think GA is a much better value right now if you check out their balance sheet. They still have $600 million or so in cash (after their $150 million buyback. Their earnings are around $200 million a year. And their market cap is around $1.5B.

    I'm very nervous about their next earnings report however. So I will wait until their next earnings report before I commit.
    Reply | Link to Comment
More Comments on PWRD »
Top Rated Comment Streams:

Numbers are net rating-

See all Top 100 »
More by Trader Mark

Investment Resources
Money Management
Research
Seeking Alpha provides these ads as a service to its leading contributors
Articles on related themes
China Internet
Gaming Software
China Energy
China Funds