Owner of Wechat (Biggest social media app in china -> 1.1BILLION Monthly active users), Biggest Game publisher, King of VCs (with stakes in 600+ fast-growing companies)
Fundamental valuation
Fair Price Fwd P/FCF of 25 w/ 25% FCF growth per share = 25 X (20HKD FCF per share) + 28.33 HKD cash per share = 528.33 HKD
Entry Price with Margin of Safety of 10% = 475...
Macro Reasons
-China has a population of 1.3billion VS US's 0.33 Billion, about 4x more
-Rising Chinese middle class with a growing disposable income
-It is estimated that China's GDP is set to overtake the US in 5-8 years
Fundamentals Reasons
-With 56% of the e-commerce market share in China and a growing e-commerce pie, Alibaba is poised for greater growth...
$35 seems to be a strong support level for British American Tobacco, will be looking to sell some puts or go into a long position if it falls to $35 and below. Also earnings at approximately $4 per share will provide great support as it will be trading at p/e of 8.75 which is extremely cheap for a global consumer defensive business growing at 2-3% EPS....
Commodities are rapidly increasing in prices while the US govt continues to pump trillions of fiscal dollars into Biden's infrastructure plan & federal unemployment benefits. Also with feds fund rates kept at 0% and recent reported inflation at 5%, negative real rates should continue to provide strong support for monetary metals like gold/silver. Additionally with...
