CDC Corporation (CHINA)

[EZ2]

CDC Falls for Second Day After 3Q Loss
Monday December 17, 3:06 pm ET
CDC Shares Decline for Second Day in Wake of 3rd-Quarter Loss Report


NEW YORK (AP) -- Shares of CDC Corp. fell to a new year low Monday as analysts and investors reacted to the Chinese software and gaming company's Friday report of a third-quarter loss.
CDC shares lost 41 cents, or 9.8 percent, to $3.77 in Monday afternoon trading.

On Friday the company said it swung to a third-quarter loss on declining game and mobile application revenue, sending its shares down 20 percent.

In a note to clients Monday, JMP Securities analyst Patrick Walravens lowered his price target for the stock to $7 from $9.50 and cut his 2008 revenue estimate for CDC Games to $20 million from $60 million.

Walravens called CDC's third-quarter results "solid on the software side but very disappointing in the online gaming business."

Also Monday, Cantor Fitzgerald analyst Mark Verbeck cut his price target for CDC shares to $7 from $11.

"We are basing our valuation primarily on the software business alone and leaving aside the mobile, Internet and games businesses which have uncertain worth, in our view," Verbeck said.

Verbeck kept his "Buy" rating for the stock.