Third Time is a Charm: Chinese New Year: Yatsen Retail$YSG has been down only for its existence (i got fleeced badly in the first few post IPO months)
fundamentals vs share price are converging toward a point of must-buy
China and Chinese ADRs are always known to be massive risk - because many Chinese frauds are in the history book
IF this turns out not to be a fraud, Rather it turns out to be the NIO Motors of Retail MakeUp and lifestyle branding
THEN this becomes an easy 4 bagger and potentially a 20 bagger in the next few years.
YSG trade ideas
Hillhouse capital may have smelled something in YSG I have just written an article about YSG at my Buymeacoffee blog . So if anyone is interested in the fundamental thesis about YSG, please go there.
From a price action stand point, YSG is forming a very young U-shape (well it only got listen for less than 3 months), all the MAs are trending upward and it has recently been stabilising and getting its support at the $23-25 level. I am seeing a well balance risk reward play here by setting the cut loss at $21.7.
YSGWe have a formed C&H pattern on the chart, which is in the stage of retesting the lid, everything is ready to start up. There is one growth target - $ 26.93 (+ 26.8%). After reaching the goal, I recommend taking profit and closing the position. Anyone who wishes can place a stop order at the price level of 18.20. The options board has a high IV = 150%, which allows for more efficient rejection of this trade using options, I will sell puts YSG March19'21 20 PUT with the possibility of further rolling.