Riedel CNBC Interview - Opportunities in EM During Market Volatility

Founder, Riedel Research

David Riedel

Founder

Independent equity research on GEM Markets

Riedel Research

Riedel provides equity research and analysis to leading financial organizations. By becoming members of a region (Asia, Latin America, Emerging Europe or Global), organizations have access to an integrated set of services including:

Regular company coverage reports
Up-to-date investment decision advice (buy, hold, sell)
Monthly regional and global conference calls
Customized company reports and unlimited on-line access to the program's services.

Riedel provides research coverage of companies across the full range of market capitalization. Experienced research professionals in each market develop company reports and analysis as well as earnings models and projections. Ratings are Buy, Hold and Sell with a focus on compelling investment ideas - both long and short. Downloadable, dynamic earnings models are built to facilitate sensitivity analysis.

Please feel free to contact us for complimentary access to our written research.  We want to show you that our unique research flow can add value and help develop a long-term, high value-add relationship.

Riedel's model focuses on providing clients with unique insights and consulting in addition to unlimited access to all produced research This model allows members to receive exponential benefits for their retainer fees.

Equity Bottom-Up

Alibaba Group Holding  / Equity Bottom-Up

<ul><li>No matter what direction the Chinese economy is taking there will always be places to invest in the second largest economy in the world.</li><li>Similarly, we believe that whatever the direction of the Chinese retail market is, BABA will continue to take market share from retail stores.</li><li>China retailing GMV (Gross Merchandise Volume) increased 24% YOY in 4Q16 (as of March 2016).</li><li>Within China retailing, ultimate consumers increased 21% YOY in 4Q16 (as of March 2016). (Exhibit 3)</li><li>We assume BABA’s total revenues will grow 37% in 2017 (as of March 2017) and 35% in 2018 versus 33% in 2016.</li><li>Operating margin will improve to 34% in 2017 (as of March 2017) and 39% in 2018 versus 29% in 2016.</li><li>Both time series and cross-sectional P/E comparisons suggest a target price of USD 97 and an upside of 20%. BUY.</li></ul>

No matter what direction the Chinese economy is taking there will always be places to invest in the second largest economy in the world.Similarly, we believe that whatever the direction of the Chinese retail market is, BABA will continue to take market share from retail stores.China retailing GMV (Gross Merchandise Volume) increased 24% YOY in 4Q16 (as of March 2016).Within China retailing, ultimate consumers increased 21% YOY in 4Q16 (as of March 2016). (Exhibit 3)We assume BABA’s total revenues will grow 37% in 2017 (as of March 2017) and 35% in 2018 versus 33% in 2016.Operating margin will improve to 34% in 2017 (as of March 2017) and 39% in 2018 versus 29% in 2016.Both time series and cross-sectional P/E comparisons suggest a target price of USD 97 and an upside of 20%. BUY.

Alibaba - 20%+ Upside as Dominance of China ECommerce Continues - BUY