XIAOMI19 trade ideas
Safe Trade : Long Xiaomi on Bottoming Out effectXiaomi appears to have hit the bottom and appears to be on the recovery after a morning star session. The DOM also looks good where the buyers are overpowering the sellers. Good for a long market entry for Xiaomi:
- Entry: 10.22
- SL: 9.66
- TP: 11.61
Not sure what is the fundamentals behind it?
- New products?
- Oversold?
- Thawing of the trade war between US and China
- Dovish Fed?
Any case, still have bad news such as the weakness in Chinese trade in the second half of 2018 due to trade war, Brexit stalemate, US Gov Shutdown, probe into Trump's Russian links and so on. But in any case, this is a safe bet as Xiaomi is a solid company that had fallen from its IPO price of $16. Went long myself. Risk is there but good risk to take.
Xiaomi - good things come to those who waitI have received a ton of questions about Xiaomi recently. People are in a rush to buy the discounted stock...
Me. Even I love Xiaomi as a company and use multiple products. I will hold myself from buying Xiaomi stocks yet.
Just some numbers to think about.
Xiaomi Market Cap 246.469
Apple Market Cap 720.301B
In my humble opinion. Both stocks are INSANELY OVERVALUED. Most of the tech stocks are insanely overvalued right now.
We are in a bear market in Asia. US tech stocks in a bear market and a bear market for global stocks is about to start.
So I'm not in a rush to buy yet.
There will be bounces but I will look to short Xiaomi AGAIN on any rally. I'm already shorting Amazon, Apple.
And Xioami is great for consumers but crap for investors as they don't turn any profits. Basically same Amazon concept and I'm shorting Amazon already. It's a bubble.
Xiaomi has Started to Climb
Xiaomi has fallen hard from the IPO, but has hit a bottom and will not start to climb back up built off new phones and increased phone services. Huawei will probably always be the top in China but Xiaomi will be a strong #2 in the market and a top 10 in the rest of the world.
1810 - Xiaomi HKEX basic setup
Xiaomi shows some signs of reverse / end of correction / around listing price. However locally Xiaomi is on the downtrend side.
Reasons to be bullish include an expected surge in revenue and earnings, driven by Xiaomi’s focus on Internet services and its increasing share of the hardware market in China, according to notes seen by Bloomberg. In a 63-page note to clients titled “Building a mountain one grain at a time,” Goldman Sachs analysts including Piyush Mubayi estimate Xiaomi has as many as 190 million users worldwide.
CICC predicts Xiaomi will grow revenue by 45 percent and earnings by 60 percent at a compound annual growth rate in 2018-2020. Morgan Stanley predicts a 61 percent growth rate for net profit in that period. Xiaomi is expected to release earnings on Aug. 22.
Analysts now predict Xiaomi will rise 22 percent from Wednesday’s close, according to the average 12-month target price compiled by Bloomberg.
www.bloomberg.com
IPO Xiaomi gives one of the most promising trades this summer Yesterday, one of the leaders in the global smartphone industry Xiaomi held initial public offering of shares on the Hong Kong Stock Exchange. So far, it looks like a complete failure (of the planned capitalization of $ 100 billion it was possible to reach only about $ 50 billion), but we consider this as an excellent investment opportunity and we will outline our argument below.
To start with, current quotes are not quite a reflection of objective reality, but rather an emotional impression of the state of investors on the Asian stock markets. The fact is that the moment for the IPO Xiaomi was chosen extremely unsuccessfully (in fact, extremely unsuccessful for Xiaomi, but very successful for those who want to buy cheaper). Stock markets throughout Asia literally crumble and renew annual lows. All this takes place against the background of the active phase of the trade war between the US and China, which officially started last Friday. That is, optimism on the stock markets of Asia and China is not present for now. But again, the key word is "for now"
Next, let's talk about the company itself. Xiaomi is one of the world's largest manufacturers of smartphones (the fourth place in the world). And the smartphone market can be said to be the basis of the modern high-tech world. At the same time, Xiaomi is a company that is rapidly developing, entering new markets and capturing them. And if for the time being mostly developing countries (but we are talking about such giants as China and India), then in the future it is a question of global domination (although now the company's products are sold in 74 countries of the world).
In total, we consider the current prices as a unique opportunity for cheaper purchases. The closest analogy is the example of Facebook's IPO, which at first was also exceptionally failure. But, how it all ended we all know (just to be on the safe side, stocks rose from $ 18 to $ 200 in five years, that is, they gave an average yield of 200% per year). We consider this parallel to be very appropriate and recommend buying Xiaomi stocks, while they are twice cheaper than IPO underwriter estimates.
