First off is huya. Huya is a twitch competitor in the Chinese region. They are mostly owned by Tencent and therefore have exclusive rights to stream Tencent games. Their current p/e works out to 25 and peg of 0.6. Excepted growth in earnings is around 44 percent this year and a potential merger is underway with a competitor that would give them a monopoly on the industry in China and thus market in-elasticity. They have a market cap of 3 billion dollars and have a whopping 1.5 billion in cash meaning losing over 50 percent is a near impossibly as the book value would exceed the share price. It’s down 60 percent from it’s peak in a growing market and i thought I’d share it with you.
Second one is General Motors. This may seem like an interesting one as General Motors is thought of a slow growing automotive company but gm currently trades at a p/e of around 10. With almost 20 billion dollars on its balance sheet. More importantly the company is on the forefront of the automotive industry. They have a controlling stake in an autonomous driving company called cruise which is now valued at 30 billion dollars or half their market cap. They have the second best battery technology on the market and they have a profitable electric car business and expect to invest 20 billion dollars into electric cars in the next couple of years. They produce battery powertrains that are extremely efficient and are the second cheapest to make and are selling it to third party companies. Overall they are on the forefront of multiple industries and are turning into more of a technology company whose future profits could very well be driven by strong software profits instead of hardware
Third one is Corsair. Corsair gaming currently trades at a p/e of around 20. Last year it had revenue growth of 75 percent and its forward pe now works out to a 15, which is extremely low for the growth of the company. As streaming picks up so has the demand for the companies products do as well they own Elgato (the biggest streaming equipment brand on earth), they also own origin pc, and are extremely good value because they can secure deals directly from Corsair giving them advantage in the sector. Overall Corsair has high growth,low pe, and an exceptional outlook.
Fourth and final one is baozun. Baozun does e-commerce distribution and management for overseas companies coming into the Chinese e-commerce market. E-commerce in China is a rapidly growing industry not expected to slow down at all in coming years and as China continues to open up it’s economy by reducing regulations on foreign brands, we should see baozun capitalise on such. It’s p/e is a bit higher then the rest at 35 but it’s expected growth of 33 percent puts that down to 27. It has a good balance sheet with 400 million in cash and also has a shopify like business for small businesses in China. Overall a great stock at a fair price.
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