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Old 05-17-2017, 08:15 AM   #1
DuckU
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Tencent

I've been following Tencent for the past 3 months and wondering if others have taken position.

Like Alibaba, are there concerns that their accounting practices may be "cooked"?

From Bloomberg May 17, 2017
China’s largest internet company posted record quarterly sales and profit that topped all analysts’ estimates as blockbuster titles including Honour of Kings drove a billion-plus users on WeChat and QQ to spend on game items. Chairman Pony Ma’s strategy of stockpiling rights to hit anime and novels and developing shows in-house is transforming the company into a hybrid Marvel Studios-Netflix style content factory.

Also what are the pros/cons of buying TCEHY v. TCTZF?
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Old 05-22-2017, 04:32 PM   #2
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Re: Tencent

Up 7.5% since i initially posted about TCEHY last week.

Seems like Tencent was somewhat overlooked compared to BABA, but is starting to pick-up momentum.

I'd be really interested to hear anyone's thoughts or positions on Tencent.

Considering adding to my long position.
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Old 05-25-2017, 02:06 AM   #3
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Re: Tencent

I have been reading a lot of news on them the last few months (Live in HK) and it seems they are either going to be boom or bust, mentality wise. They seem to be aggressively relying on WeChat, where WeChat is in a transition phase of slowly charging more and more for marketing, so its reminding me similar to the ESPN saga, of each year the royalties to maintain the product suite is increasing.

On a side note the dip you saw on Monday was due to a fire next to their main office, some outside construction caused it, with no fault of Tencent, but I feel it clearly shows that any sign of trouble there is a Sell now attitude, which echoes my above point.

While I have been making steady gains in the Chinese/HK stock market, I have had a few of my positions completely wiped out by mass selling due to WeChat celebrity recommendations, there seems to be a much wider market of small investors (1,000 of this, 1,000 of this) when compared to traditional US based markets where funds own the majority. The only good news is the mandatory stock halts to stop the slide, otherwise your position could literally by 0.0001 in a few hours.

Also, the difference is dividend based: TCTZF pays dividends in HKD whilst TCEHY pays dividends in USD. Both tickers act in similar fashion, and no known analyst has been able to locate/predict any abnormality between the two.
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Old 05-25-2017, 07:50 PM   #4
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Re: Tencent

How do they monetize League Of Legends? The Riot HQ is close to me and they've expanded their cult like crazy in recent years. (Tencent took them over about 18 months ago)
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Old 06-03-2017, 07:17 AM   #5
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Re: Tencent

From all the skins and heroes players buy.
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Old 08-17-2017, 09:18 AM   #6
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Re: Tencent

Is anybody else holding/trading/tracking Tencent? Curious to hear thoughts about short and long term.

I'm considering taking some profits here after they just posted a monster quarter.
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Old 08-17-2017, 06:38 PM   #7
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Re: Tencent

Could buy Naspers (JSE:NPN). They own 33% of Tencent (~130bn) and are currently valued at 95bn. Are de facto a proxy for tencent.
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Old 08-17-2017, 10:35 PM   #8
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Re: Tencent

Quote:
Originally Posted by Sokz View Post
Could buy Naspers (JSE:NPN). They own 33% of Tencent (~130bn) and are currently valued at 95bn. Are de facto a proxy for tencent.
Is there an advantage to owning Naspers over straight play on Tencent?
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Old 08-18-2017, 05:09 AM   #9
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Re: Tencent

Other than its apparent undervaluation, no.
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Old 08-18-2017, 12:17 PM   #10
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Re: Tencent

http://basehitinvesting.com/one-of-t...-widest-moats/

Is potentially very cheap since they require so little capital to grow, and potential runway is long. If they grow at average of 30% a year for the next decade, this is still cheap at 50-60x earnings.

Not sure how to handicap that though. Also don't like the political pressure on stocks like this, they own the perfect tools for communist party to control the population.

I think with some patience you can get this cheaper in the next few years, one hiccup in growth and it probably falls 20-30%.
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Old 08-19-2017, 12:12 PM   #11
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Re: Tencent

I would be worrying about shareholder protection rather than growth or whether the book is cooked.

Chinese government can do all sort of things "for the good of the country" without regards of shareholder rights.

See how Alipay get moved from Alibaba to Ma's hand.

https://en.wikipedia.org/wiki/Alipay
The 2010 transfer of Alipay's ownership was controversial, with media reports in 2011 that Yahoo! and Softbank (Alibaba Group's controlling shareholders) were not informed of the sale for nominal value. Chinese business publications Century Weekly criticised Ma, who stated that Alibaba Group's board of directors was aware of the transaction.[6] The incident was criticised in foreign and Chinese media as harming foreign trust in making Chinese investments.[7] The ownership dispute was resolved by Alibaba Group, Yahoo!, and Softbank in July 2011.[8]

I am not holding Tencent stock.
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Old 08-20-2017, 03:52 PM   #12
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Re: Tencent

Jack Ma is a creepy cult leader. Something about that guy just gives me the creeps.

I quite like JD.com. They are the Amazon of China. With a more ethical version of Jeff Bezos at the helm. You can get it for 1x, revenue vs Amazon 3x revenue + you get UPS of China basically.

And you get a CEO who has proven again and again to be extremely trustworthy. And much less political risk than tencent.
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