CHINESE IPO STOCKS ARE CRAZY BUT OFFER HUGE INVESTING POTENTIAL | Summary and Q&A

TL;DR

This video provides an analysis of three recent Chinese IPOs: Sogo, Kunian, and ZTO, highlighting their prospects, risks, and potential for investors.

Key Insights

• 👨‍💼 Despite the risks associated with Chinese IPOs, there are opportunities to find quality businesses beyond the volatility and speculation.
• 😇 Sogo's heavy dependence on 10 cent and high price-earnings ratio make it a risky investment.
• 😘 Kunian's growth in users and profitability, coupled with its low price-earnings ratio, make it a company worth researching further.
• 😚 ZTO faces the risk of losing Alibaba's support to Best, but its significant revenues and growth potential make it an investment opportunity to consider.
• ✋ Best, although currently not profitable, has the potential for high growth and improved margins in the future.
• 🧑‍🏭 Evaluating the risk and reward, as well as considering factors like earnings per share and dividend, are crucial in making informed investment decisions.

Transcript

could a fellow investors today we're going to discuss for your recent Chinese IPOs now when somebody mentions an initial public offering and especially when it comes from China everybody is very very averse to such companies because they say it's too risky everything can happen high volatility blah blah blah and that's correct there is high volatil... Read More

Questions & Answers

Q: Why is Sogo considered a risky investment?

Sogo's heavy dependence on 10 cent for traffic and its high price-earnings ratio make it a risky investment due to the risk of losing 10 cent support and the volatility associated with such reliance.

Q: What makes Kunian an interesting investment opportunity?

Kunian has experienced significant growth in users and profits, with a low price-earnings ratio. This, coupled with the influx of funds from its IPO, makes it worth further research for potential investors.

Q: What are the risks associated with ZTO?

ZTO faces the risk of losing Alibaba's support to competitor Best, which could impact its profitability. However, its revenues and growth potential are still substantial, making it an investment to consider.

Q: How does Best compare to ZTO?

Best is a growing logistics company, but it is yet to reach profitability. However, its improving margins and potential for future growth make it an intriguing investment opportunity.

Summary & Key Takeaways

• Sogo is a Chinese search engine that is heavily dependent on 10 cent, making it a risky investment due to its reliance on one player.

• Kunian, a micro lending specialist, has seen significant growth in users and profits, with a low price-earnings ratio, making it worth further research.

• ZTO, a logistics company, faces the risk of losing Alibaba's support to competitor Best. However, its revenues and growth potential are still significant.