Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

Recs

1

Shanda Games Shares Jumped: What You Need to Know

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

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: For the second time in two months, Shanda Interactive's (Nasdaq: SNDA  ) gaming unit is rallying. Shares of Shanda Games (Nasdaq: GAME  ) rose as much as 12% after the company announced plans to pay out $285 million in special dividends to domestic and foreign investors.

So what: Holders of Class A and B shares will each receive $0.51 per stub held. Holders of American depositary shares will receive $1.02 per ADS held. The payment amounts to a massive 25% yield as of Friday's close.

Now what: Management justified the payout by pointing to $584 million in net available cash and investments and $275 million in operating cash flow generated last year. Do you believe the special dividend is a smart move? Would you buy shares of Shanda Games at current prices? Please weigh in using the comments box below.

Interested in more information about Shanda Games? Add it to your watchlist by clicking here.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 30, 2011, at 5:16 PM, paddlinfaster wrote:

    What am I missing here? Even after TODAY when most of the market went up, you can buy shares in this stock and STILL get more than a 20% didvidend in less than 2 months. TWO MONTHS. TWENTY PERCENT.

    I actually own a tiny bit of this stock & was close to buying a tiny bit more last Friday. I may STILL buy more because, heck, who doesn't like a guaranteed 20% return in 2 MONTHS? But I keep thinking I MUST be missing something! Has any other Chinese stock/company done something like this? Do you think this is some kind of desperation ploy to prop up the stock & if so, why?

    And most of all - WHY isn't everyone else buying? Even if only for a 2 month TRADE?

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1608631, ~/Articles/ArticleHandler.aspx, 7/29/2015 7:49:21 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Tim Beyers
TMFMileHigh

Tim Beyers first began writing for the Fool in 2003. Today, he's an analyst for Motley Fool Rule Breakers and Motley Fool Supernova. At Fool.com, he covers disruptive ideas in technology and entertainment, though you'll most often find him writing and talking about the business of comics. Find him online at timbeyers.me or send email to tbeyers@fool.com. For more insights, follow Tim on Google+ and Twitter.

Today's Market

updated 10 hours ago Sponsored by:
DOW 17,630.27 189.68 1.09%
S&P 500 2,093.25 25.61 1.24%
NASD 5,089.21 49.43 0.98%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

7/28/2015 4:00 PM
GAME $6.56 Down -0.05 -0.76%
Shanda Games Limit… CAPS Rating: **
SNDA.DL $0.00 Down +0.00 +0.00%
Shanda Interactive… CAPS Rating: ***

Advertisement