Perfect World Shares Popped: What You Need to Know (PWRD)

Perfect World Shares Popped: What You Need to Know

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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 Chinese online gaming specialist Perfect World (Nasdaq: PWRD ) surged 12% in intraday trading Tuesday on extraordinarily high volume.

So what: At the time of publication, more than 1.5 million shares of Perfect World had already changed hands, versus its average volume of about 474,000 shares. I can't pinpoint any company-specific news fueling the pop, but with rivals like Sina (NYSE: SINA ) , Sohu.com (Nasdaq: SOHU ) , and Shanda Interactive (Nasdaq: SNDA ) also rallying today, there's definitely something about the Chinese online gaming space that has Mr. Market all excited.

Now what: Even with today's rally, Perfect World remains a reasonable value. While the shares are now up more than 35% in April alone, they still trade at forward P/E of only 9.5. With a pair of potential blockbuster games (The Heaven Sword and Dragon Saber and Laughing in the Wind) slated for 2011, along with the initiation of its massive $100 million buyback program, Perfect World might be too cheap to pass up.

Interested in more info on Perfect World? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Sina is a Motley Fool Stock Advisor pick. Sohu is a recommendation of Rule Breakers. Try any of our Foolish newsletter services free for 30 days.

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