Long term - China $BABA, $BIDU, $TAL, $EDURecently we have been seeing a constant selling pressure from Chinese stocks. These are generating some long term opportunity. Very large MOAT here, with very high uncertainity in the market.
Do focus on the price move and adjust the projected pattern accordingly.
Some might pick $EDU against $TAL due to their cash position. $TAL has a industry advantage being the leader in the education sector, so I favor $TAL, with their small investments and large bond sale last year, there is very little risk of further earning dilution in 2021 (constant 3% max). Next Earning Report is Huge.
$BABA - DAMN the enterprise value, My model shows to justify the enterprise value $BABA is currently trading, we should have a growth rate decline from 46% to 8% and the interest rate for 20 Yr bond to go up 42 - 60%, with EPS of $10 in 2021, 2022. Is that likely? I would argue not all of them will happen.
Therefore, I want to wait for the selling frenzy to be over to take a sizeable position here (Leverage - Go big or go home).
$BIDU - The least favoritefor me at this point. If I have to get really interested in Bidu the share better drop another 20%. I am not too keen here.
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This is similar to my 2017 Eurusd Post. FXE play. The reversal is so evident that could really be worth.
