Trade Ideas
Jeffrey
- We own $2.5MM of Tencent. The stock is down 20% from the highs in January. A lot of that has to do with its weight in the Chinese and EM ETFs.
I think we should add $2MM.
Naspers has now caught up and outperformed Tencent since I bought Naspers. Let's also switch Naspers back into Tencent.
a. Downward revisions to their egaming business have hurt sentiment.
b. They own 48% of Fortnite (on a run rate of $3B in revs this year — and that is before the China launch in the coming weeks).
c. Tencent Music targeting a $30B IPO
d. WeChat remains the dominant social platform in China
e. ARPU is 1/10th of FB yet consumers spend 2.3x more time on WeChat
f. Overall the story is still a good one and the stock has been hurt by the selloff in China and downward revision to their gaming business. Feels like a lot of bad news is priced in down here.
- GOOG is up 4% today and everybody upgrading the stock. We still own $1.7MM. How about taking some profits on half the position. Feels a little euphoric right now in tech. We are up $530K on this position.
Paul Barrett
Alpha Group Capital LLC
142 W 57th Street, 11th Floor, New York, NY 10019