this is what creates opportunities IMO
precisely this was the reason I picked up VIPS at $5 18 months back and locked them up!
robhooo, In the hindsight it was good I sold $60 calls against $55 calls. I am overall positive on my YY call option trades but still disappointed how badly YY traded today. hope VIPS trades well helping YY recover to new highs or $70 target set by Piper
I am disappointed on YY's stock performance today. But I expect it to recover and reach Piper's target of 70. Added some YY stock (apart from my Nov call options) towards the close today.
Next Monday VIPS is scheduled to report. It will be interesting to watch how VIPS trades pre-earnings (3 more trading days) and Tuesday following the results.
VIPS is in a different space than YY and unlike YY, Q3 is seasonally a low quarter and Q4 is the strongest quarter for VIPS. Plus VIPS has received many analyst positive comments ahead of results including price target revisions to $85 by Citi recently.
May VIPS stock performance help YY too ..
biggest drag is they overpay for pre-IPO companies (like FB - savvy investors bought FB at 20s where as Moe bought at 30s ..) and the stiff fees they charge on profits .. like 20%?
expect more comments tomorrow from other analysts ..
can't figure out a genuine reason for the drop .. looks like a big investor cashing out ..
or some insiders cashing out ...?
if you're investing based on MW .. then good luck
MW focuses on small companies under 1B
and not companies with millions of users / customers and verifiable traffic on 3rd party research sites like iResearch, Alexa, etc.
Is BIDU also a fraud according to MW?
Is internet also a fraud?
How about recent high flying IPOs like WUBA, QUNR
If WUBA is justified of $25 then YY should be at 100 ..
Guess what, if YY prices IPO today, it may as well be a $200 stock with that growth and EPS!
I am still holding $55 Nov calls ...
This will reach 60 by options close IMO
Tomorrow there will be upgrades or price target revisions with the kind of report YY had ... its a matter of time .. this sees 70+ before next Q is upon us.
Nervous nellies are being taken out today .. which is good.
When the upward swing starts, it can go up rapidly
The report is anything but OUTSTANDING imo
If you annualize 0.47, it is 1.92 EPS folks ..
The company is growing 100%+ EPS and exploring new markets including the US .. with the current CTO setting up a new company (invested by YY and others) in the US (California).
at 1.92 annualized x 100% growth = $192 stock price on a PEG of 1.
Even if PEG is discounted by half, this stock is VERY cheap here
Once the weak hands are shaken out, this should move to newer highs .. Its disappointing to see the stock over 60 already .. but let it consolidate a day or two before it rockets up
shaking out weak hands before it closes up .. this can reverse within a short time .. wait for the close ..
i think YY should close +ve heading into the ER report ..
Good call ..
I am expecting twitter to be trading at $30 or over 25B (wow - 25B for a company that does not even any profits?) ... That adds $1 to GSVC NAV
Isn't that already priced into GSVC stock price?
I agree .. As I posted elsewhere fair value on this stock at a PEG of 1 is 70x next year EPS estimate of 1.77 = $123 discounted 20% for present value. It should be about $100