With time, the double top could turn into a cup with handle. When I see this, I usually just wait for the consolidation to happen. It’ll eventually confirm which pattern it is, and I don’t see a reason to buy before that. If you’re buying on long-term fundamentals, then start a portion of your position now at the discount. Add if it confirms cup with handle formation.
You can review “KRANESHARES CSI CHINA INTERNET”. This one is has gone up 62% YTD this year.
Yes, this has good results,fundamentals are good, but investors/speculators are bringing down 20% in a day, huge drop is an opportunity to buy.
Shares of Chinese mobile social networking platform provider Momo Inc. (NASDAQ:MOMO) tumbled on Tuesday despite an overwhelmingly positive second-quarter report. The company beat analyst estimates across the board, and its guidance for third-quarter revenue was well ahead of expectations. A lofty valuation may be why investors are selling off the stock. At 11:50 a.m. EDT, Momo was down about 18%.
Momo reported second-quarter revenue of $312.2 million, up 215% year over year and about $26 million higher than the average analyst estimate. Live video service generated $259.4 million of revenue, up from $57.9 million in the prior-year period, driven by 4.1 million paying users. Value-added service revenue rose 58% to $24.6 million, mobile marketing revenue grew 15% to $19.0 million, and mobile game revenue jumped 23% to $9.1 million. Companywide monthly active users totaled 91.3 million, up from 74.8 million one year ago.
Non-GAAP diluted net income per ADS was $0.35, up from $0.08 in the prior-year period and $0.04 higher than analysts expected. The earnings surge was driven by higher revenue, partially offset by rapidly rising costs.
For the third quarter, Momo expects to produce revenue between $337 million and $342 million, up 115% to 118% year over year. Analysts were anticipating revenue guidance of $307 million.
While Momo reported incredible growth that was well ahead of expectations and its outlook called for continued triple-digit revenue growth, the stock is unquestionably priced optimistically. With a market capitalization of nearly $9 billion prior to Tuesday’s slump, Momo traded for about nine times trailing-12-month sales, including the second-quarter results.
Momo’s results may have simply not been good enough to justify that valuation in the eyes of the market.
Already full Are you suggesting that I should replace one of the Seven Up? Which one?
So far the FANG, ANT and BAT are doing very well too. Make me wonders why bother investing in small cap… wuqijun could be right, better to investing them. Will continue to monitor.
No need to replace. This is Add-on.
I have never been into BIDU or BABA nor in any China stocks.
Yesterday, I was looking at Fidelity screen-er that gave “KRANESHARES CSI CHINA INTERNET” with 62% YTD jump.
Reviewed further, I saw MOMO one among the holding. Today results are good, but stock dropped from peak (double top) 20%. Since fundamentals are good, future growth good, it is likely to go up in the long run. I am confident that If I put $100, chances that I may get 10% or 15% easily before end of the year.
Please note that I am not looking 10x in some years, but trying to get good stocks at discount rate.
It seems I got one fellow forum dweller bullish on MOMO. Who else?
I said a while back I don’t like small caps. I wish MOMO were larger cap. Today’s action is one reason. I bought MOMO despite its smallness, not because.
Why are you so bullish on MOMO?
I stuck with BAT for Chinese stocks.
It’s a new social network that’s fast gaining traction in china. It’s incredibly hard to get a new social network going and these guys are doing it.
They are like Facebook live on steroid. Millions of people tune in everyday to watch ordinary people broadcast from their cellphones. In turn they get tips for performing. It’s a uniquely Chinese social network. No equivalent in the west.
I suspect the end result will be they get bought out by tencent. So not likely to be 10x.
Can another scenario be they end up like Snapchat?
May we know the entry point of your MOMO purchase?
SnapChat is junk compared to MOMO.
MOMO Fundamentals are strong, esp P/E, Profit Margin and current QTR and future QTR.
I trust the KWEB ETF which has 4% holding on MOMO.
That is now,either tomorrow or in next 3-5 days ! Do you think MOMO stays this lower in a week? IMO, Today drop 20% is a steal, it won’t long last !.
My only issue that I do not know about China Economy ! I assume China economy is going to be good for next 6 months. If this is assured, I will be fine.
I am not marketing here, but No matter who buys or not, I have already placed a limit order, $36.00 , for tomorrow morning !
Today volume is unusually high at 44M stocks while 5M stock is average. This means some big party(Mutual or Hedge fund) is selling its stake. It can even go down tomorrow. If so, I may buy one more time,if it dips less than 5% of my price, then stop buying it.
What is BAT? Baidu, Alibaba and Tencent?
Why would anyone buy an ETF like that when they can just flat out buy the underlying stocks themselves. ETF charges a management fee, you know, and it’s not cheap. Better to go without it.
MIT Technology Review’s 50 smartest companies:
I have an investment idea. What if I bought these companies the first year they made the MIT list? For example, Nvidia first showed up on the list in 2015. Back in 2015 NVDA was trading around $20. Now it’s around 160. 8X in 3 years.
Amazon first showed up in 2013. Back then AMZN was around 300. Now it’s close to 1000. 3X in 4 years.
You got the idea. Tencent would be 5x since 2013. Apple 5x since 2010.
But sometimes it doesn’t work so well. Intel first showed up in 2010. Back then it was around $21. Today it’s $34. Only 1.6X in 7 years. Even the Dow has better return.
So which public company is this year’s freshman? A Chinese company called iFlytek. It’s listed in Shenzhen. I am trying to learn more about the company. But because it’s listed in China, very little English media coverage.
It’s very volatile, typical of companies listed in China:
My MIT strategy would totally bombed on First Solar. It first made the list on 2010, when it was trading around $140. Now it’s only $46. It lost 67% of the value.
It also doesn’t account for companies that flamed out. What if it made the list one year and dropped off never to be seen again?
So don’t take it too seriously.
There is never a solid, set strategy for buying stocks. The only strategy I can come up with is
- buy in bulk
- buy and hold
- buy a few
The last one means avoid over diversification (mediocre) but also being overly risky (don’t put all your eggs in one basket). Although @hanera might disagree with that one…
Your criteria is too complicated. Basically mimic founders of startups. They hold 1 stock for a long time before diversification.