NEW YORK (TheStreet) -- China Mobile Games (CMGE - Get Report) stock is tumbling after the company reportedly removed nine executives from their positions, including its President Ying Shuling, due to allegations of bribery. The company has yet to confirm or deny reports.
By late afternoon, shares had dropped 22.6% to $14.63. Trading volume of 2.4 million shares was more than 11 times its three-month daily average.
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- CMGE's very impressive revenue growth greatly exceeded the industry average of 7.5%. Since the same quarter one year prior, revenues leaped by 487.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CMGE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.87, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for CHINA MOBILE GAMES -ADR is rather high; currently it is at 62.90%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 16.12% trails the industry average.
- In comparison to the other companies in the Software industry and the overall market, CHINA MOBILE GAMES -ADR's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- Net operating cash flow has significantly decreased to -$3.79 million or 777.99% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: CMGE Ratings Report