China stocks are becoming Buyback Monsters
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- Опубліковано 5 лип 2024
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I believe I am nearing the acceptance phase among the five stages of grief. The drop in stock prices no longer stirs any emotions within me. I find myself somewhat hoping that Alibaba’s stock remains low and undervalued for an extended period, permitting the company to buy back its shares.
Until the government confiscates the whole company
I've been at that stage since last year
Just looked at Baidu. They have an equity of circa 30 billion US dollars, this is roughly their market cap at the moment. So, whatever they earn is for free. Chinese equities are really very cheap at the moment. It's a math problem, if they keep up buying back stock the price of the stock will eventually grow.
Funny how you mention bidu and buybacks the example for the exact opposite. Sitting on a gigantic cash position and returning nothing to the "shareholder".
@@jaspier8439 are they not doing buybacks? I don’t know. Where do they spend all these money then?
You will lose a lot of money since investors will be shown the door when these companies get nationalized at a low stock price, by CCP for national security reasons.
Yeap, a lot of them are near book - and if you don't mind buying in the HKEX, there are quite a lot of typical net-net plays
I'm thinking to put some cash in stocks, I was at Salt Shack and i overheard some friends saying its ripe enough, but Is this a good time to buy stocks? I’ve been sitting on over $145K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
I agree, just because the market presents opportunities doesn't mean we should rush in headfirst. For this reason, we should look for appropriate market analysis or guidance or, alternatively, seek advice from certified market strategists.
Very true. I started investing before the epidemic and made over $950k that year while knowing nothing about investing. Really, I was just taking advise from a professional.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
There are many independent advisors you might research. However, I work with Dianne Sarah Olson, and we have been collaborating for about four years. She is a great resource, so you could move forward with her if you feel comfortable doing so.
She's very popular in the US. Love the comment section for it's transparency
Its a good day when u post
Wym?
Tq chee keng for the in depth explanation of dividends vs share buy back. Initially i felt i didn’t understand the intro and that “maybe it is all basic knowledge for you”
But when u explained with examples, it was soooo helpful. Thank you!
Good stuff, buyback when it is cheap
My largest holding is Akamai. It has three lines of revenue, delivery, security, and compute. The stock is down 30 dollars after reporting on losing Tiktok as a delivery customer. However, ever since investing in Cyber security, it has grown to become the largest source of revenue. What's most exciting is that the edge compute market that they are building out is estimated to grow 10fold by 2030 and can become the largest revenue source. By the end of the year Akamai will have expanded compute to 70 major cities across the globe.. Compared to other security providers like Crowdstrike and Zscaler, Akamai to me looks undervalued. Gross profit margins are 60% compared to the others 70% but I have confidence in the CEO..
I must say I love dividend investing, getting those payments in for just holding a company is amazing. from what I've witnessed it all comes down to having a Licensed investment Adviser to handle your portfolio. All thanks to my Investment Adviser, who has traded my savings daily from quarter a million to almost one million dollars in the last 3 months.❤✅
Amazing ! I have Liquid Cash I want to put into stocks, but i want to ensure good profits & safety. Care to share how you achieved such milestone.
Essmildaa Morgan is well known, just look her up
Thanks, Looked her up, I can see her profile here on the web, will send her a well articulated mail. I hope she finds space in her schedule to help me.
Essmildaa Morgan is finally getting the popularity she deserves and this docent come as a surprise. my favourite stocks are Amazon,Walmart, Visa & Telsa
Consistently investing in quality dividend paying companies with the right guidance over the long term is a relatively easy strategy to create generational wealth
Thank you for sharing! With the stock buyback plans, Are you adding more BABA?
Just reinvesting dividends!
I'm still quite over-exposed to BABA. Unless something big happens - I think I'm comfortable w my average and exposure
important difference between dividends and buybacks is taxation
Question is never about how well the Chinese stocks like baba, Pdd will perform. But rather, can they outperform the US giants like Nvidia, Apple, Microsoft. There is no point in investing in a mediocre to poor company just because they are cheap at the moment. Lowest of the past 5 years may be the highest of the next 10 years
It's so nice to have over 7% fundamental return this year 😋
Weird way to start but ill hear u out
Buy the dip!
Hi mate,
In regards with Douyu
I am still down 40% on this company, tbh I am sitting on a loss for some time now. I am thinking of a few scenarios..
Keep the stock and might go up until the dividend is around 20%...so around 34USD ( current price is 17USD); this will mean that I will eventually close before ex-dividend because I assume after ex-dividend date the stock will plunge again, with no profit gained and lesson learned.
The other option would be to keep it past the ex-div. get the dividends and hopefully the stock won't plunge, if it plunges..I can still enjoy the dividends but will sit on a loss...
How would you play this stock ?
Cheers
you wouldn't sit on a loss, you get difference paid out...
I think a few things about Doyu that I failed to mention in the video. The main point was that many investors are skeptical about the money Chinese company hold their balance sheet. Coupled with the negative sentiment, which made them trade under book. And Doyu was one of them.
That said, Doyu has been embroiled in some scandals - specific to gambling/illegal activities. The business right now don't seem to be in a good place. After this $9+ divv payout, I think it might be all their USD holdings offshore. So the remaining "book value" should be their onshort assets (which could or could not be extracted).
As an investment, I don't see much prospects for it. Sure, they could pull a Luckin Coffee from here (which 20x after their scandal) - but that's probably not why you've bought it in the first place. Hoping for a biz turnaround is the only way out - and you shouldn't treat it as a dividend stock - because it's nowhere near the category of it being matured.
Thanks for your reply, it's much appreciated! As a side note, I bought this stock before the merger with Huya, but it wasn’t approved by the CCP or whichever authority is responsible. The ongoing crackdown on gaming and recent issues with the CEO being detained make it seem like the problems will never end. This is one of those stocks I started buying in 2021 when everything in the US was so overvalued, and I saw "opportunities" in China.
More buying for me 😅
I have some exposure to China for three simple reasons. Rapidly growing economy. Great infrastructure. Dirt cheap price. There is a lot of risk given that our nations (China and US) are on the brink of conventional war, but if war doesn't break out its a pretty dang good deal. So I have some exposure.
As long as Trump leads in the US polls and the EU EV tariff is still in play, there is little chance for a Chinese rebound.
Sir, plz tell us more about CHINESE BANKS health
What do u folks think HSI will be at, by Sept 1st ? Given the last failed rally but current support
You trading it?
No, thanks!😂
I guess they are welcome to buy all the way to $0.00, since most of these investments will be nationalized by CCP and investors will be almost completely wiped out.
I think the previous story sold to us was that they cannot buyback/use the money at all, can't seem to settle with which is which.
@@taychikeng Yes, what most people do not realize is that buybacks are good for stockholders only when the price starts exceeding the buyback price for some indefinite extended period of time that exceeds your position holding period.
On the other hand, if the price goes downwards towards zero, buybacks only concentrate the positions of the bagholders. With Chinese equities, I am afraid it is most likely to be the latter.
it's important to look at the political climate as well..
its arbitrary
Thank you for sharing your analysis. Would you know buybacks will impact ADRs in tandem? I've bought a few Tencent ADR in the past but not sure if Tencent HK buybacks will help the ADR
Yes. Same effect as ADRs represent the shares.
Yes
share buy back basically also signal that Management had no way to utilising their cash to grow the company😢
Why is BABA price staying so low?
Beats me, they still have to show earnings improvement before they can sell the recovery story to investors. Tencent on the other hand, despite being sold down too, but manage to hold up better (although still down) with better earnings result
Im long in NIO stock
Where is the money....from X?
Hope you have a great understanding of Chinese economy as well as their individual companies before you make recommendations to other new traders. Just because a stock is cheap doesn’t mean its a buy.
Surely agree that if stock is cheap don't mean a buy.
Chinese large cap stocks
Shares bought back are a bad deal for investors. Contrary to popular belief, repurchased shares become relegated for accounting purposes to the status of treasury stock. They are not retired.They will be given away at some later date at a discount to market, typically as an additional incentive to company executives. Seldom do we see buybacks authorized in periods where companies are operating at a loss.
Yea, there's that potential that it'll be re-issued. But we've seen many successful case-studies of companies sticking to their guns, and help increase the ownership of current shareholders.
Agreed on the last sentence, you expecting these china companies to start operating at a loss?
Thank you for sharing, please tag me
I gave up on baba. I'm investing in what chinese government is nurturing. Something they have to grow...semiconductor industry
Baidu is the best stock rn
From a valuation POV, I do rank them quite highly too
But the problem is China stocks don't trade on fundamentals, but only on sentiment. Unless foreigners feel again at comfort buying chinese companies, Baba, JD etc. might even buyback 50% of the shares, but that will change nothing.
Agree that short term is based on sentiments. You don't believe fundamentals will be tracked in the long term?
Still sleeping....😂
Chinese big tech stock are not performing because of
1) Trustability of their financial statement
2) Racism/prejudice against China
Bro my Nvidia is up 350% and I’m planning to put some to the laggards, would you recommend $BABA of $PDD
This channel has no idea what its talking about. But my parents runs a relatively large ecommerce store in China and I can tell you that Pdd is snatching market shares aggressively from baba along with their Temu in North America that became the #1 most downloaded app in app store. But knowing the upcoming currents and economic conditions and potential ban of pdd I woudn’t do it if I was u. You are selling an elite, valuable, quality company that can keep growing for the next decade for some cheap, discounted, subpar to mediocre at best Chinese stock at a cheap price. Do you make the purchase? The decision is yours
@@Deepfknvaluediversifying with some China sounds reasonable though
That's quite a big leap tho - what's your thought process? US Tech Expensive, China Tech Cheap, that's why you wanna switch?
@@Deepfknvalue Hey, you've made several points I want to further explore and would like to get you on to share more about your experience. We can do masking/editing post-production if you don't want to show your face.
Better dun appear. Market drop.
Mayb dun do youtube one month.
Chinese equities run up.
I think you think too highly that my videos can move 9-figure companies
SBB is a gimmick
Why?
i have a feeling that you will have grey hair in 3 decades and doing videos still with the same issue of the last 3 years 😂baba fa´ eva
😅 3 years is still too short
Newslatuuh
There are maybe 4000 plus stocks in the us markets, this guy is fixated on this baba...
:// Can't seem to get enough of this bugger, but I do hold quite a bit of other stocks too, if you haven't watch my portfolio... True that I make quite a lot of videos on BABA - but I'm pretty sure I have more than 50 other videos on Tencent, Meta, Amazon, TSM etc. You watched them?