China stocks are becoming Buyback Monsters

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Leave a comment down below, and let's have a discussion.

[@taychikeng]

📍Survey: tinyurl.com/CKContent 📊Substack Newsletter: taychikeng.substack.com/

[@lllll819]

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.

[@i6power30]

Until the government confiscates the whole company

[@taychikeng]

I've been at that stage since last year

[@ElibethCortez]

Watching the market's ups and downs shows how quickly things can change. In the market, strategic, informed trading isn't a choice; it's a must. Remember, caution is as crucial as ambition here. This dedication to continuous learning is inspiring...i have delve deeply into active trading and managed to grow a nest egg of around 127k to a decent 532k... I'm especially grateful to Jane Nina Pickett, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape..

[@robbietwo]

Thanks for sharing, I just did a web check with her full names mentioned

[@amirm-tn9rq]

It's unexpected to come across her name here. She understands every beginner’s intention and fix you to a trading course that matches your capacity, she knows her stuff! Her advice has been invaluable to my trading journey. Definitely worth giving a shot!

[@TaniaSanchez-yh8tj]

It's truly refreshing to see a comment about Jane Nina Pickett. I've also had the pleasure of working with her for several months after discovering more about her online. She has a knack for simplifying complex issues, whether it's a market surge or decline. Her approach consistently keeps you ahead of the curve. I'd call her a guru, for sure

[@Brian23787]

Investing has proven to be an incredibly beneficial decision. My cryptocurrency profits continue to play a substantial role in growing my overall wealth, reducing my reliance on my salary

[@azimcengiz]

Nice to see this here. Jane's understanding of market indicators is impressive. She knows exactly when to enter and exit trades for maximum profit. her siignals are top notch

[@Dimitris_1987]

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.

[@jaspier8439]

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".

[@Dimitris_1987]

@@jaspier8439 are they not doing buybacks? I don’t know. Where do they spend all these money then?

[@als2cents679]

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.

[@taychikeng]

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

[@singlim2327]

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!

[@user-cr4kr6uf9n]

Its a good day when u post

[@taychikeng]

Wym?

[@antonkal]

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..

[@Deepfknvalue]

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

[@BoonTee]

Good stuff, buyback when it is cheap

[@TheChristiangonz]

It's so nice to have over 7% fundamental return this year 😋

[@avocadoarmadillo7031]

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.

[@nietur]

important difference between dividends and buybacks is taxation

[@xclbeh410]

Thank you for sharing! With the stock buyback plans, Are you adding more BABA?

[@matthewstruthers7152]

Just reinvesting dividends!

[@taychikeng]

I'm still quite over-exposed to BABA. Unless something big happens - I think I'm comfortable w my average and exposure

[@anson1418]

oh. The guy keep praising Alibaba in 2021/2022 is back promoting China stocks when China's economy is collapsing. Those losses of Alibaba must be harsh.

[@taychikeng]

Been sharing my portfolio since then too.

[@ryantan5963]

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

[@mikevelu4326]

Yes. Same effect as ADRs represent the shares.

[@taychikeng]

Yes

[@geoffwitt4227]

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.

[@frederiklarsen6946]

Im long in NIO stock

[@xiuying6874]

If you have $30,000 starting cash to invest how would you allocate it in different sectors?

[@jessicaknoll4700]

That's a very personal question, with risk tolerance, income levels, time horizon, etc.

[@xiuying6874]

That is correct, However, what is your suggestions?

[@jessicaknoll4700]

would suggest looking up risk management techniques.

[@john00123]

personally like to have positions of at least 5k, preferably 10k. So 30k gives me 3-6 positions. Top conviction picks as a stock pick or I would even go 50%+ broad market ETF and than pick 2 or 3 stocks. Again this is me, and may definitely not be right for you.

[@veliadisrosasjr1647]

You'll need to figure out what is best for you. Welcome on board and all the best!

[@AziNuPot]

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

[@nietur]

you wouldn't sit on a loss, you get difference paid out...

[@taychikeng]

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.

[@AziNuPot]

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.

[@NoWorriesTJ]

Weird way to start but ill hear u out

[@g2gcio]

share buy back basically also signal that Management had no way to utilising their cash to grow the company😢

[@edwinhan966]

Buy the dip!

[@maltlickytexas]

No, thanks!😂

[@lonnykid2997]

More buying for me 😅

[@als2cents679]

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.

[@taychikeng]

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.

[@als2cents679]

@@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.

[@b4rruVlog]

What do u folks think HSI will be at, by Sept 1st ? Given the last failed rally but current support

[@taychikeng]

You trading it?

[@thomasroberts136]

Why is BABA price staying so low?

[@taychikeng]

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

[@andrewzanas9387]

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.

[@taychikeng]

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?

[@Deepfknvalue]

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.

[@taychikeng]

Surely agree that if stock is cheap don't mean a buy.

[@simontey4768]

it's important to look at the political climate as well..

[@frankhong6313]

its arbitrary

[@vincentloh1969]

Chinese large cap stocks

[@TheMafuri]

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.

[@taychikeng]

Agree that short term is based on sentiments. You don't believe fundamentals will be tracked in the long term?

[@tayyong9323]

Thank you for sharing, please tag me

[@Stocklove]

Baidu is the best stock rn

[@taychikeng]

From a valuation POV, I do rank them quite highly too

[@robertlam9277]

Still sleeping....😂

[@zack2415]

Bro my Nvidia is up 350% and I’m planning to put some to the laggards, would you recommend $BABA of $PDD

[@Deepfknvalue]

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

[@hklhkl21]

@@Deepfknvaluediversifying with some China sounds reasonable though

[@taychikeng]

That's quite a big leap tho - what's your thought process? US Tech Expensive, China Tech Cheap, that's why you wanna switch?

[@taychikeng]

@@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.

[@deskakker8294]

Newslatuuh

[@user-pe6fl9zq6o]

Better dun appear. Market drop. Mayb dun do youtube one month. Chinese equities run up.

[@taychikeng]

I think you think too highly that my videos can move 9-figure companies

[@ignatiusee3564]

SBB is a gimmick

[@taychikeng]

Why?

[@fengjikangqiang]

There are maybe 4000 plus stocks in the us markets, this guy is fixated on this baba...

[@taychikeng]

:// 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?

[@guillermotraverso4112]

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

[@taychikeng]

😅 3 years is still too short