meituan dianpin flying to the moonI bought this stock from May to September, making profits along the way but adjusted trailing SL too tight and was taken out. Since then, I have not been able to participate on the rising uptrend.
In retrospect, looking at the chart now, I see much clearer my mistakes for not getting in again as each pullback was an opportunity. Thus, opportunity costs is high and one has to buy a much higher price to buy and hope that it gets even higher. But because it is a new IPO stock, it is relatively hard to know how high it can go forward since there is no historical price action to based on.
Food is something very close to the heart of Chinese consumers. It is no longer just a functional need but a social need as well. With rising income, people are able to afford better food and prices at restaurants and there exists a need to compare and provide reviews online on which restaurant to choose from. It serves the needs of busy nomads especially those in the Tier 1 and 2 cities where life is more hectic and time is of essence.
The fact that all this information can be searched and performed online via a mobile phone in China makes it even easier for the Chinese consumers to use. Imagine having great food , great company and at a discount , what is there not to like ? It is a win -win for the merchants, customers and the company as well.
For those who are new to this counter, read it here :
en.wikipedia.org
It is the western version of Groupon and Tripadvisor combined.
I am monitoring closely for the price to fall further before scooping to buy again. It looks a
toppish for now with weaker buyers strength. Don't forget to put this in your watch list
