8 Best Undervalued Stocks | Alibaba, Tencent, Berkshire Hathaway Stock

[@MooreMoney]

Access all of the models at the $5/month tier: www.patreon.com/TayMooreMoney

[@jchong416]

Tchey is criminally undervalued. Best of breed Chinese stock

[@MooreMoney]

My thoughts exactly

[@JY88168]

And correction on your part: Joe tsai has emphasized on capital allocation and ROIC during his last earnings call. He mentioned divesting from noncore biz units to improve ROIC. so I’d say that this is a top priority for baba mgmt team now too

[@MooreMoney]

Thank you so much for that, I always learn from you! Keep it coming!

[@composedcapital2841]

The BRK earnings per share differ from year to year, because it has to calculate the change in value of the equity portfolio also - this makes earnings very volatile. Prefer to look at cash flow!

[@MooreMoney]

You're right, I wonder what the forecasted FCFPS + excess capital winds up to be.

[@fundrisefanfam]

I can quickly look this up on Qualtrim.

[@fxsti]

I have been holding back on anything in China until there are real signals of a return to growth.

[@michaelday8838]

Stock valuations will already be 200-300% higher when you see those signs.

[@evo200i]

@@michaelday8838and even then it will be undervalued, no need to rush IMO

[@MooreMoney]

Stocks do tend to run quickly on signals of a return to growth.

[@vicgill1980]

Totally loved this. I think video # 334 on BABA can wait

[@MooreMoney]

Hahaha

[@fundrisefanfam]

Dude, quit that noise. I need his $BABA brainpower.

[@fundrisefanfam]

@@MooreMoney I down voted because there's no ha in your Hahaha

[@valueinvesting6059]

Refined my investments in China and see the small cap value more compelling. For instance, Baozun owns Gap China, 51% of Hunter shoe brand, and most recently looking to aquire 51% of Location which is a partner of Douyin. The company bought Gap China when it was in distress and cheap. Now it has positive cash flow with 56% gross margin. As China's economy improves so will their e-commerce service revenue which has contracted but is was a leader in 2019 for market share in this segment which gives them insights through their data as to which premium brands are best to aquire. This company is under appreciated and announced a 20 million share buyback. Momo is now my largest holding followed by Baozun. Reconstructing my portfolio after all the stimulus measures made in China and money inflows according to bank of America recorded 2nd largest ever into Chinese equities.

[@MooreMoney]

Very interesting, I should update my MOMO model.

[@valueinvesting6059]

But, I think China Yuchai is better after analyzing more companies because it has a recent tailwind that is more material I believe. It's in an heavy duty autoparts manufacturer. More specifically they focus on a variety of engines from hydrogen, natural gas, hybrid, and diesel if I'm not mistaken. Sales for China's heavy duty trucks has been strong since august of last year with december and january of this year experiencing and incredible surge in sales. December increased 30% and January now 64%. Shah has a 10% stake in this business and has had some phenomenel success with businesses about to experience a turnaround. Heavy duty truck sales has a 5-6 year business cycles and at the end of each cycle the trucks need to be replaced for various industries such as agriculture, construction, mining, oil and gas just to name a few. So, I could be wrong but data suggest we're at the beginning of on up cycle. So this will be my last big change to my portfolio and have decided to go all in with this equity. Nuts you might think? Probably, but their tangible book value shows a large margin of safety with just the cash alone not to mention everything else. Forgot to mention they also do have some property for hospitality if I'm not mistaken but this doesn't account for the bulk of their revenues. So in effect this is a net net that is profitable in the cyclical industry that is experiencing large growth at a dirty cheap valuation. Lastly, the float is small and the company has a history of of dividends and its corporate office is in Singapore so the jurisdiction isn't as volatile as China but lots of their business is conducted in China so they'll be beneficiaries of large stimulus in China but will have more pro business policies at home. On a technical basis the chart looks strong and goes up on very small volume because I believe lots of the stock has now been accumalated. Again, I could be wrong but these facts don't lie. This will be my last adjustment to my portfolio before there earnings which I believe is the 22nd of this month. Was amazed with how Yum China popped after earnings. @@MooreMoney

[@ming-weihe7976]

For Chinese stocks, due to geopolitical risk and west media bios, P/E ratio 20 is fairly priced. They will never reach American stock peers' valuation. For example; Alibaba P/E is around 10; AMZN P/E is 83

[@MooreMoney]

Yea I dont think they will

[@maxjames00077]

They literally had these valuations a couple years ago. Also, some stocks still have pretty crazy valuations, like PDD. The geopolitical risks aren't that high, it's extremely overrated by the media.

[@thomaschamper2120]

Would have loved to hear you speak on BTI. Love that stock. I have it at at least 50% upside. While no immediate positive catalysts, the stock pays a 8% dividend.

[@MooreMoney]

Yea I'd like to cover it as well and compare it against it's competitors

[@shortclimberbeta]

Based on a DCF model, operating margin at 0.395, triple revenue in year 10, Tencent still looks over valued at current price on 1/30/2024

[@evo200i]

Just wondering PYPL not on the list

[@MooreMoney]

I wonder if they have an issue with the enduring competitiveness of the business.

[@mikem7976]

Didn't Berkshire slow down the stock buybacks recently? That is usually a decent tell on whether that stock is undervalued.

[@MooreMoney]

That is a good indicator

[@DudeEsq]

BRK.B is not a buy at these levels, although it’s one of the best businesses in the world. Took the BABA ride down with you over the last three years. Decided to sell after concluding the government approach and business climate are more similar to Russia than the U.S. or EU. Competition is also unrelenting and will continue to take market share. Good luck, everyone.

[@MooreMoney]

Good luck to you too!

[@Vikram-wd4sz]

2024 is the year of BABA

[@MooreMoney]

Let's hope!

[@EF-rj5gp]

how about Ping An Insurance?

[@MooreMoney]

Is that a Chinese insurer?

[@TheScaryGermanGuy]

11:28 good point 👍

[@MooreMoney]

Thank you!

[@weiyongl]

thanks for this. loaded up on tencent and alibaba last week. JD is questionable though as a recommendation.

[@MooreMoney]

Most welcome!

[@fundrisefanfam]

Excellent video. I swear to the one true Canadian God that I'll sign up for your program. You're too good not to. All Praise Trudeau, hallowed be his name.

[@MooreMoney]

The only Canadian God that I recognize is the House Hippo! (I really hope you get that one haha 😄). Also thank you for considering the Patreon!

[@fundrisefanfam]

@@MooreMoney bro, I love Canadians, I ain't Canadian. No clue about your hip, hipop, hipop anonymous.

[@meysamesfahaniofficialmeys557]

Thank you

[@MooreMoney]

You're welcome

[@WinningFinancially]

Chinese stock really have a low valuation for such a long time already. AJD is probably my favorite.

[@JY88168]

Tencent is less affected by Chinese government than people think bc 20% of their gaming revenue comes from china; not as big as people think

[@MooreMoney]

Oh interesting!

[@maxjames00077]

20% of their revenue you mean. and 66% from their gaming revenue.

[@JY88168]

@@maxjames00077 20% of their gaming revenue not total revenue. Big difference

[@maxjames00077]

@@JY88168 no, 20% of all. Show me numbers

[@maxjames00077]

@@JY88168 their entire revenue was 150bn cny in q3. 30bn was from domestic games. Which means 20% from entire revenue

[@foodguy3435]

Cool!

[@MooreMoney]

Thank you!

[@foodguy3435]

@@MooreMoney No problem, keep up the great content!

[@digil842]

JD's net cash can buy back 80% of their shares basically. I don't see why they are not doing that.

[@MooreMoney]

I wonder what they say about that on their next call.

[@maxjames00077]

Probably because without the cash they would go bankrupt. They need to make investments to grow or even keep marketshare.

[@rufgux]

Meow

[@MooreMoney]

Huge Meowwwwww!!!!