Originally Posted by Whosonfirst
Okay I know investing in a Chinese company by anyone on this board probably isn't going to resonate too much. MD is the third largest tech company in China behind Alibaba and Tencent. While this company is primary a fundamental play with good technicals right now, I mention it on the contrarian thread because of the country it represents. I made a small investment last week, and may add if the revenues continue to grow at a record pace.
As to China as an investment, with 1.3 billion people and potential customers for MD, from an investment view, they are hard for me to ignore. MD surpassed Baidu in market cap with Bidu at $35 Billion, vs. $54.8 billion for MD. Their business covers a phone super App for Food delivery, Travel, Movie tickets, Restaurant reservations & Ride Hailing. In our country, that takes a half-dozen apps and companies to accomplish. They aready have 400 million active users in China with 1.3 billion base to go after. They have already taken market share from Alibaba on Food delivery. If you're not familiar with Alibaba, they are China's version of Amazon.
Anyone who has followed Facebook and Amazon, knows they didn't make any money for 5 years or longer, which is pretty typical for tech startups. The first 4 years, Meituan Dianping also didn't make any money, but in their last quarter, they reported making a suprise profit of $124 million, which is something Amzn or FB never did that early on. They also have a Current Ratio above 2.20 which is great for a new tech company. Anything above 1.0 is considered good.
So what are potential negatives? First of all, like VW years ago, they only trade on the US market OTC. VW was OTC here and the largest automaker in the world. They now been eclipsed by Renault-Nissan-Mitsubishi. Being OTC, their liquidity is low, but if their revenues stay on a 50% growth rate, the number of shares should rise as well. I'm not listing the actual symbol, so this isn't a recommendation to buy, which it isn't. Before this, my only Chinese market exposure has been BABA, other than US companies like KFC and McDonalds who have a large presence in China.
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