Shanda Interactive Entertainment Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of China-based media company Shanda Interactive Entertainment (Nasdaq: SNDA  ) are having a ball today, jumping as high as 15.3% on about triple its average trading volume.

So what: The company just filed for an IPO of Cloudary, its e-books subsidiary formerly known as Shanda Literature. Shanda will remain the majority owner, giving the company the opportunity to raise more money if Cloudary's shares take off.

Now what: Shanda investors are showing their appreciation for management's attempt to unlock Cloudary's value. Cloudary is a relatively recent addition to Shanda Literature, but it's obviously a fast-growing one. It's a cloud-computing play and an unabashed assault on traditional publishing models, and I'll be sure to keep a close eye on this stock once it becomes available. Until then, I'll simply keep Shanda on my watchlist.

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