Dada Nexus Is The Growth Retailer To Look Now

Dada Nexus Limited (NASDAQ: DADA) has not yet gained the followership or investor respect that is commanded by other fast-growing retailers like China-based Pinduoduo Inc. (NASDAQ: PDD) or the US-based Wayfair Inc. (NYSE: W), even though Dada carries similar traits, i.e. revolutionizing retail using a differentiated approach and a management that is focused on building long-term sustainable advantage. Dada’s differentiated approach allows the company to act as a bridge to bring out the best in offline and online business models, one that brands love and customers find utilitarian for its…

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HUYA and DouYu Combined Is More Than Just A Monopoly

HUYA Inc.’s (NYSE: HUYA) merger with DouYu International Holdings Limited (NASDAQ: DOYU) is the kind of aggressive strategic maneuvering that makes investors go for Chinese ADRs in the first place. The combination will create a live game streaming behemoth with dominant market share, almost monopolistic if I’m allowed to use that word, with a major strategic advantage over peers, leadership in technology, and better access to top streamers, right set of ingredients to ward off any emerging threats from the likes of Kuaishou. Financially, the combined company will have some…

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Li Auto IPO: NIO, Tesla And Nikola Need Not Worry, For Now.

There is a new player in the electric vehicle space – Li Auto Inc.; new only in respect to the publicly listed U.S. stocks. Li Auto Inc. is planning to come out with an IPO soon. Since we have followed the space for a while and love reading SEC filings, here are some of our preliminary thoughts about the company and the upcoming IPO. It’s a hybrid is one of the first things you will hear from Bears on the space while talking about Li Auto and its first model…

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360 Finance, Not Just Because Ant Financial Is Going Public

We are usually reluctant to participate in IPOs and upcoming Ant Financial issue, 33% owned by Alibaba (Nasdaq: BABA), will be no different. The issue did nudge us to take a closer look at the online lending space in China again, including 360 Finance, Inc. (Nasdaq: QFIN), which is one of the three major next-generation online lending platforms in the country. We are impressed with what we saw. Even though investors continue to ignore 360 Finance, the business has transitioned towards more data & technology-centric, away from credit risk management.…

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Qutoutiao Is Making Positive Changes, Stock Will Follow

We recently bought shares of Qutoutiao Inc. (Nasdaq: QTT) and here’s why. The business has started to show results of the positive changes undertaken by the management to strengthen its strategic position in the Chinese content aggregator market and do so profitably soon. For more than a year, the Street has put the stock in the penalty box for its exploding cost structure, concerns over competition from Toutiao (owned by ByteDance of Tiktok fame), and a lack of a clear path to profitability. Even though the company was growing fast,…

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DouYu Has Achieved Critical Mass For Profitable Growth

DouYu International Holdings (Nasdaq: DOYU) is a live streaming service in China, like Twitch owned by Amazon (Nasdaq: AMZN) in the U.S., that has achieved critical mass needed for the stock to attract investor interest. The live streaming of e-sports and video games has been accepted as a mainstream form of entertainment in China. Two players, DouYu and Huya Inc. (Nasdaq: HUYA), dominate the market, second largest in the world, commanding close 60% market share combined with the industry growing at healthy double-digit rates. The Street continues to ignore these names…

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Daqo New Energy: Well Positioned ‘Post Lockdown’ Stock At 7 PE

Usually, we don’t feel enthusiastic about high fixed cost manufacturing businesses in a weak economy because demand goes down that leads to lower pricing while the cost structure stays the same resulting in margins going down and the business starts to bleed cash. At the same time, the stock is not cheap enough because value investors start bidding it higher in anticipation of a comeback. Daqo New Energy Corp. (NYSE: DQ) seems different right now, with a 15% market share of the polysilicon that is used to manufacture solar panels;…

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Chinese Stocks May Continue To Run, Here’s Why

Chinese stocks, especially those listed on the U.S. and Hong Kong stock exchanges are performing well over last two-three weeks, even though some of the hot trendy names of April, including those benefiting from ‘stay at home’ trend like Slack Technologies (Nasdaq: WORK) and V-shape comeback plays like airlines, are starting to show signs of tiredness. Most ETFs with Chinese stocks, including Invesco China Technology (NYSE: CQQQ) have come back nicely since the March lows. Indeed, China Technology ETF is up more than 35% over last one year, even though…

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Tencent Music Stock Can Follow Spotify Now

Investors have largely ignored Tencent Music Entertainment Group (NYSE: TME) stock ever since the company went public, earlier this year, concentrating largely on much sexier Spotify (Nasdaq: SPOT) in the music streaming space. That may not change anytime soon, but now that Spotify is once again gaining favors among investors, Tencent deserves a closer look and the business offers enough promise to help stock follow the Spotify’s lead, if not overtake. Some amount of Wall Street’s indifference towards Tencent Music’s stock is due to the difference between Tencent Music’s business…

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Youdao Inc, There’s Story Beyond Lockdown Too

Like many other ‘stay at home’ stocks, i.e. stocks that benefited from lockdown and people staying indoors, Youdao (NYSE: DAO) stock has more than doubled from mid-March levels, like many other online education stocks. As the market cools down and starts to focus on fundamentals again, highlighting problems at a lot of online learning companies, Youdao is one name that should be able to hold its own. U.S. investors are skeptical of the space, rightfully so Not just the online learning sectors, U.S. investors, in general, are skeptical of the…

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