Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese online game operator Shanda Games (Nasdaq: GAME) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Shanda's business and see what CAPS investors are saying about the stock right now.

Shanda facts

Headquarters (Founded)

Shanghai, China (2008)

Market Cap

$1.9 billion


Home entertainment software

Trailing-12-Month Revenue

$703.9 million


CEO Alan Tan (since January 2010)

CFO Richard Wei (since April 2009)

Trailing-12-Month Return on Capital


Cash / Debt

$375.8 million / $2.2 million

Competitors (Nasdaq: NTES)

The9 Limited (Nasdaq: NCTY)

Giant Interactive (NYSE: GA)

Strategic Partners

Google (Nasdaq: GOOG)

THQ (Nasdaq: THQI)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 98% of the 225 members who have rated Shanda believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars latimerburned and mrindependent, both of whom are ranked in the top 11% of our community.

Three days ago, latimerburned explained why the Shanda Interactive (Nasdaq: SNDA) spinoff looked too attractive to pass up:

[T]his is the higher margin part of [Shanda Interactive] with more growth. I still don't get why the spun it out, that wasn't their most brilliant idea yet. Still, this part is dirt cheap compared to the parent and eventually will get the premium valuation it deserves.

In a pitch from one day later, mrindependent expands on the stock as a fun way to profit. Here's an excerpt:

[B]oth of the spunoff companies, Shanda interactive ... and Shanda Games ... appear to have a bright future. If I had to pick one (which I do because I have only one slot left in my portfolio) I would choose Shanda Games ... because that is where the profits and revenue have traditionally been earned. ... Did I mention that this company is debt free with about $1 cash per share? Did I mention that return on invested capital is in the 100% plus range? Did I mention that the company is selling for approximately 9 times expected 2010 earnings? Did I mention that historical sales growth is stratospheric and longterm sales growth possibilities look bright?

What do you think about Shanda, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. NetEase, Google, and Shanda Interactive are all Motley Fool Rule Breakers picks. The Fool's disclosure policy always gets a perfect score.