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Online Game Penny Stock by johnjordan576

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There are many different avenues to look at when one is searching for technology stocks to invest in. Here, Sasha Cekerevac highlights one Chinese technology penny stock that has seen a year-over-year increase in revenue of 21%

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									                  Source: Penny Stock Detectives
Online Game Penny Stock Increases Revenue 21% from
                      Last Year

                         There are many different avenues to look at when
                         one is searching for technology stocks to invest in.
                         One of the most basic differences is hardware
                         technology stocks versus software technology
                         stocks. Obviously, some companies offer a
                         combination of both, but for some of the smaller
                         technology stocks, it can be advantageous to be
                         solely on the software side of the business. This is
because, as adoption by consumers grows, corporate earnings are easier to
scale up.

One market that is extremely attractive, yet investors are hesitant to be active in
these days, is that of Chinese technology stocks. American investors are hesitant
to look at Chinese technology stocks because of questionable accounting
practices. Unfortunately, there have been some unethical firms that have put the
whole sector in question. No matter how one might categorize companies in
China, no one questions the massive potential growth for corporate earnings in
that nation.

Giant Interactive Group Inc. (NYSE/GA) is one of the more interesting technology
stocks, because it is one of the leading developers for online games in China.
The company specializes in multiplayer online games to drive corporate
earnings. The company reported second-quarter earnings, which ended June 30,
2012, with net revenue at $83.1 million, up 21.1% from the same period last year.
Attributable net income available to shareholders was $48.4 million for the
quarter, up 2,920% from the same period last year.

Key metrics when looking for corporate earnings growth in technology stocks that
are based off online players are metrics related to the actual game play. For the
quarter, active paying accounts were up over 11% from the previous year, and
average revenue per user was up 9.7% from last year.

These are great increases, as they show underlying strength in the actual games
themselves. If players don’t like the products offered, they would certainly play
less. That’s not what the company’s results show; in fact, it’s just the opposite.
                    Chart courtesy of www.StockCharts.com

The company’s shares broke a mini-downtrend in August, as can be seen by the
downward sloping line. With technology stocks being a highly competitive market
sector, the key to corporate earnings growth is developing a product in which
customers continually want more of the product, and are willing to spend money
on it. It appears from the results we’ve seen so far that the company is able to
maintain its edge against competing technology stocks, as the number of paid
accounts has increased substantially.

The only question might be the long-term viability of technology stocks that
develop such products as online games. The reason being is that competition is
intense, which means corporate earnings growth can be affected through new
product offerings by other technology stocks and price competition. Only time will
tell. However, no one questions the appetite for online games in China.

                  Source: Penny Stock Detectives

								
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