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We currently estimate the user decline to slow down in the coming years, but if Perfect World continues to cede ground to its competitors, the actual user numbers could fall much below our estimate, and this could mean a significant downside to our price estimate for Perfect World.
FORBES: Perfect World's Earnings Should Help Calm Fears On Chinese ADRs
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These include the transaction costs inherent in a trading strategy (even if the cost of a trade has dropped dramatically in the past 10 years) and limited or no access to the vast computing power that competitors will be using to crunch the numbers.
FORBES: The Irresistible Nature of Trading
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In the past four years demand for 212 numbers has more than tripled thanks to second lines, modems, faxes and the emergence of about 30 small competitors which, says Nynex, buy telephone numbers in blocks of 10, 000.
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