JD.com (JD)

Re: JD.com (JD)

Postby winston » Mon Aug 20, 2018 9:56 am

not vested

Margin pressures to linger

2Q18 margins disappointed again due to higher investment in R&D and logistics network expansion, causing non-GAAP NP to come in below our expectations.

We were also disappointed by the weak topline growth guidance for 3Q18F, and expect margin pressures for JD.com to linger.

JD has announced an asset disposal plan to monetise its logistics infrastructure within the next 6-12 months, which could offset its hefty capital expenditures.

Maintain Hold with a lower DCF-based TP of US$33.00.

2Q18: Worse-than-expected margin pressure

Source: CIMB

https://brokingrfs.cimb.com/FSjpCq-X0UC ... ix7vA2.pdf
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Re: JD.com (JD)

Postby winston » Wed Sep 26, 2018 9:33 pm

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JD.com (JD)

I don’t know what to say about JD.com (NASDAQ:JD) other than the stock has been absolutely decimated.

With a 52-week high just over $50 and with the stock now under $25, JD stock is officially down more than 50% from its January highs.

We called out a possible bounce trade or two, but warned investors to keep a tight leash on JD. If the trade didn’t pan out, they needed to bail. We’ve seen this with FedEx (NYSE:FDX), Snap (NYSE:SNAP), General Electric (NYSE:GE) and many others.

Discipline is key when it comes to the stock market. In any regard, when was near $32, I started looking at the low $20s, thinking there’s no way it can get there. Now under $25, perhaps that $22 to $23 area isn’t as crazy as it seemed a few months ago.

The company has a $35 billion valuation and is expected to generate sales of almost $69 billion this year. That is, shares trade at almost 0.5 times this year’s revenue, a pretty cheap valuation for a key e-commerce player in one of the largest e-commerce markets in the world.

Further, estimates call for ~30% sales growth this year and ~25% growth next year. While earnings are set to decline from 50 cents per share last year to just 42 cents per share in 2018, analysts expect that figure to more than double in 2019 to 88 cents a share. That prices JD at a reasonable 27 times forward earnings.

Is JD stock a screaming buy amid an escalating trade way? No, not necessarily. But it should definitely be on the radar near current levels.

Source: Investor Place
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Re: JD.com (JD)

Postby winston » Mon Oct 01, 2018 8:28 pm

JD.com (JD) stocks to sell

Among up-and-coming stocks, JD.com (NASDAQ:JD) continues to find itself overshadowed by larger Chinese retailers such as Alibaba (NYSE:BABA).

Moreover, all Chinese stocks have suffered amid an ongoing trade war with the U.S. JD has lost almost half of its value since January and currently trades near 52-week lows.

But here’s the thing. JD operates only in China and Southeast Asia. Trade with the U.S. could go away tomorrow, and JD would see no direct effect.

Moreover, JD probably deserves the comparisons to Amazon (NASDAQ:AMZN) more than Alibaba. From the beginning, JD built out a warehouse and transportation infrastructure as it expanded across China. Alibaba served as more of a middleman, which did not own any of its products. It has only recently focused on infrastructure.

Profits should also resume massive increases soon. This year’s expected profit of 42 cents per share fell from last year’s 50 cents per share level.

However, Wall Street expects to see 88 cents per share from the company this year. Moreover, the average price target for JD stock currently stands at $40.52. JD trades at around $26 per share now.

With JD’s lack of connection to the West, it will not see much of a benefit from the Christmas season. However, I think investors will soon notice the massive drop in a stock that will see high profit growth. Moreover, once they also notice the lack of direct U.S. exposure, they should start returning to JD stock soon.

Source: Investor Place
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Re: JD.com (JD)

Postby winston » Thu Nov 15, 2018 10:54 pm

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Stock To Buy: JD (JD)

JD.com (NASDAQ:JD) is having an unpleasant 2018 due to three factors.

For one, its revenue growth rate has slowed down significantly.

Second, the whole Chinese tech sector has plummeted thanks to escalating trade war tensions.

Finally, JD’s CEO, Richard Liu, was involved in a sexual assault scandal that rattled some investors’ nerves.

To be clear, these are all legitimate concerns. JD stock is a high-risk, high-reward stock. But with the share price down from $50 to $22, it’s time to get aggressive as others are panicking.

JD stock is now down to 0.5x sales. That’s an absurdly cheap ratio for a fast-growing e-commerce play.

Amazon (NASDAQ:AMZN), by contrast, tended to trade at three times that level during its post-recession growth phase, and that’s before its valuation surged even higher as the cloud business took off.

Unless you think Chinese trade concerns will send their economy into a deep recession, or that the company’s business model has broken down, it’s hard to see a case where JD stock doesn’t trade back to 1x sales sooner or later.

Figuring that revenues grow 30% next year, and you’re looking at JD stock trading north of $50 per share again in due time.

Source: Investor Place
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