Investors should continue to check whether the business outlook for the companies of which stocks one holds are not significantly deteriorating. Stocks can decline even without such substantial deterioration, as with the case of JD.com. What an investor should do in these cases? We develop a few thoughts and highlight the work of few other […]
November 2nd, 2018 · Comments Off on JD.com: Nerves Of Steel And An Iron Conviction
September 4th, 2018 · Comments Off on Expensive Market, What To Buy?
11 months into the SHU portfolio and we had some big gains with Trade Desk, Nutanix and Inseego, all more than doubling. But there are also a couple of laggards, a couple of stocks that have gone south a little since we bought them for the SHU portfolio. The most surprising of these is JD.com, […]
May 14th, 2018 · Comments Off on The Market Myopia Regarding JD.Com
The company is still in the land-grab phase, but myopic investors don’t seem to notice. This is odd, because the contours of what is being created is hidden in plain sight, the company is building a formidable platform and end-to-end logistics business, among other things. We have little doubt this will pay off for the […]
April 25th, 2018 · Comments Off on Are Investors Excessively Punishing Companies That Invest In Growth At The Expense Of Margins?
While not a systematic inquiry, we nevertheless spot quite a few companies whose shares get punished for investing when that results in some margin decline. With investment the cost gets in front of the benefits, so this will produce situations in which time will rectify the problem. This is especially the case with companies with […]
December 14th, 2017 · Comments Off on Alibaba’s Killer O2O Strategy
The 63% growth rate of Alibaba’s core commerce business is almost unfathomable, even given the strong tailwinds of China’s rising consumer market and online penetration. One element that is behind this is a clever strategy that blends online and offline retail to create a virtuous cycle. In the process, Alibaba is embarking on a wholesale […]
December 14th, 2017 · Comments Off on Is Alibaba Eating JD.com’s Lunch?
JD.com used to grow revenues faster than its big rival Tmall from Alibaba. However, lately these roles seem to have reversed and the shares of Alibaba have strongly outperformed those of JD.com since mid-August. The fact that JD.com was able to re-accelerate growth and produce improving margins and beat earnings shows investors shouldn’t be too […]
November 21st, 2017 · Comments Off on SHU Portfolio: JD.Com – Fast Growth, Increasing Margins
The shares of JD.com are plagued by bouts of worries about increasing competition. We believe that competition has always been a feature of the Chinese market, and JD.com has been thriving nevertheless. So we suggest investors concentrate more on growing revenues and margins, and the fairly modest value of the shares. Source: SHU Portfolio: JD.Com […]
October 27th, 2017 · Comments Off on SHU Portfolio, We Want To Buy More JD.Com
The shares aren’t expensive and off 20% from their August highs. The main worry is the intense competition in the Chinese market. But JD.com is addressing that problem, and there are important tailwinds. Source: SHU Portfolio, We Want To Buy More JD.Com – JD.com (NASDAQ:JD) | Seeking Alpha
October 4th, 2017 · Comments Off on SHU Portfolio: JD.Com, Finisar And Nutanix
We’re starting a concentrated portfolio ultimately containing some 10-12 names while keeping plenty of cash as a hedge. The first candidate is JD.com, a quality name which has sold off nearly 20% in short order. Finisar and Nutanix are also way off their highs, but we think that will correct itself in time, given the […]
September 14th, 2017 · Comments Off on Growth Accelerates At JD
The selloff in the shares of JD.com seems like an opportunity to us. The company is still expanding at a fast pace and it generates a lot of free cash flow even if margins are small. There is still ample room for further expansion. Source: Growth Accelerates At JD – JD.com (NASDAQ:JD) | Seeking Alpha