Have We Hit The Top?

[Gregmal]

YUMC has been turning it around. Own a small bit of that. 

[Gregmal]

Id also say LVMH and DEO benefit a good bit too. 

[Luke]

I am betting on my three favourite horses, tencent/prx, pdd and hang lung group. 

 

I think if you like china retail you should skip everything and go straight to PDD. I dont want to own the real shitters like toy producer or other commodities, while they are cheap i dont think they are compounders for the longterm. If you like tech there is quite some but its very hard to understand, keep up to date and predict so the road for me leads only to tencent. If you like luxury then you will like hang lung. 

 

Please let me know if you have other good ideas, as always. 

Edited yesterday at 04:02 PM by Luke

[Luke]

24 minutes ago, Gregmal said:

YUMC has been turning it around. Own a small bit of that. 

yeah, i have read the write up on this one but i am not sure how much chinese will start to dislike us-food-franchises with the increasing nationalism. its what put me off here. 

[Gregmal]

This could actually being a pretty big inflection when you consider the macro trends. US is and will possibly become more and more hostile to businesses, while trading at lets call it 20-25x. The FTC is an abomination, press is bigoted beyond belief, and politicians (both sides) enjoy scapegoating China, Russia, Middle East for everything.

 

Meanwhile China is demonstrating it will support and be favorable to its capital markets, support the general prosperity of the middle class, and take necessary action to root out bad actors; while many of the China based companies trade at sub 10-15x. 

Edited yesterday at 04:12 PM by Gregmal

[Paarslaars]

1 hour ago, Dinar said:

What are people's favorite Chinese stocks to buy now and why?  Thank you.

PDD and JD leaps ftw

[Munger_Disciple]

I find it odd that oil is sucking wind while everyone thinks China is back. There is something wrong with this picture. 

[Dinar]

39 minutes ago, Munger_Disciple said:

I find it odd that oil is sucking wind while everyone thinks China is back. There is something wrong with this picture. 

Saudi Arabia announced this morning that they may be willing to accept a lower oil price in order to defend its market share

[Dinar]

3 hours ago, Gregmal said:

Id also say LVMH and DEO benefit a good bit too. 

Agree on LVMH, not sure about DEO - cognac would be better play (Remy).   Not a fan of Diageo in general.

[Munger_Disciple]

14 minutes ago, Dinar said:

Saudi Arabia announced this morning that they may be willing to accept a lower oil price in order to defend its market share

I saw that but why would the Saudis do that if they expect more normal demand from China going forward?

[hasilp89]

3 hours ago, Gregmal said:

This could actually being a pretty big inflection when you consider the macro trends. US is and will possibly become more and more hostile to businesses, while trading at lets call it 20-25x. The FTC is an abomination, press is bigoted beyond belief, and politicians (both sides) enjoy scapegoating China, Russia, Middle East for everything.

 

Meanwhile China is demonstrating it will support and be favorable to its capital markets, support the general prosperity of the middle class, and take necessary action to root out bad actors; while many of the China based companies trade at sub 10-15x. 

you’ve got communist china lending money for corporate buybacks and capitalist USA taxing buybacks and campaigning on unrealized capital gains taxes. Does make me think.

[Dinar]

28 minutes ago, Munger_Disciple said:

I saw that but why would the Saudis do that if they expect more normal demand from China going forward?

Lower oil prices hurt Iran, an arch enemy!

[Luke]

27 minutes ago, hasilp89 said:

you’ve got communist china lending money for corporate buybacks and capitalist USA taxing buybacks and campaigning on unrealized capital gains taxes. Does make me think.

[Munger_Disciple]

2 hours ago, Dinar said:

Lower oil prices hurt Iran, an arch enemy!

 

But that's nothing new.