Independent Research, Turtles all the way down

Turtles all the way down

Independent Research

Writing short articles about mis-priced boring stocks around the world.

Equity Bottom-Up

Noah Holdings Ltd. distributes wealth management products in China.  The Company serves high net-worth individuals; enterprises affiliated with high net-worth individuals; and wholesale clients, primarily local commercial banks or branches of national commercial banks which distribute wealth management products to their own clients.

<ul><li>I mentioned Noah holdings as a trade to buy before earnings since I anticipated an announcement of significant capital returns.</li><li>This has worked out well with over $2 in dividends announced. Half of that dividend will be recurring.</li><li>So I sold out all of my shares at just under $12. This was never a high conviction investment, but merely a trade. Marking it as a 18% return.</li></ul>

I mentioned Noah holdings as a trade to buy before earnings since I anticipated an announcement of significant capital returns.This has worked out well with over $2 in dividends announced. Half of that dividend will be recurring.So I sold out all of my shares at just under $12. This was never a high conviction investment, but merely a trade. Marking it as a 18% return.

Lufax Holding Ltd operates technology-empowered personal financial services platform. The Company connects financial institutions to facilitate lending and wealth management products tailored to individual customer's needs and risk appetites.

<ul><li>Another quick trade idea. A continuation of the China theme (see my last post for more info).  Lufax holdings (LU). Again courtesy of JohnTill on Stocktwits.</li><li>A Chinese lending company, lending out directly and providing a peer to peer lending platform for the Chinese market.</li><li>With Ping An being a ~41% shareholder.</li></ul>

Another quick trade idea. A continuation of the China theme (see my last post for more info).  Lufax holdings (LU). Again courtesy of JohnTill on Stocktwits.A Chinese lending company, lending out directly and providing a peer to peer lending platform for the Chinese market.With Ping An being a ~41% shareholder.

Dada Nexus Limited operates a platform for local on-demand retail and delivery. The Company provides a digital solution leveraging the crowdsourcing model to address the challenge of frequent fluctuations brought forward by the nature of on-demand orders and to match the surging demand for delivery capacity with efficient supply. Dada Nexus serves customers in China.

<ul><li>Chinese stocks feel like loaded springs to me now. I have played this so far by buying DADA at $1.50 (I think I posted it at $1.67 ish) and closed it with a very nice profit at $2.6ish.</li><li>I did buy RERE at $1.15 and sold my last shares at $1.85. Unfortunately I was too late to post a write-up as I got reporting dates confused.</li><li>But maybe we get to have another go at this one. I had DQ on my watch list, I expected negative earnings, but their report was slightly better than expected and shares jumped from $18 to nearly $30 in a few weeks. </li></ul>

Chinese stocks feel like loaded springs to me now. I have played this so far by buying DADA at $1.50 (I think I posted it at $1.67 ish) and closed it with a very nice profit at $2.6ish.I did buy RERE at $1.15 and sold my last shares at $1.85. Unfortunately I was too late to post a write-up as I got reporting dates confused.But maybe we get to have another go at this one. I had DQ on my watch list, I expected negative earnings, but their report was slightly better than expected and shares jumped from $18 to nearly $30 in a few weeks. 

Nameson Holdings is a Knitwear manufacturer in PRC

<ul><li>First a new holding, Nameson Holdings (HKG:1982). A vertically integrated knitwear and fabrics manufacturer with most of its production base in Vietnam and some of it still in China.</li><li>They expanded to Myanmar, which did not work out so well, so they had to take significant write-downs and restructuring costs recently of 243 million HK$.</li><li>This somewhat obscures their true earnings power.</li></ul>

First a new holding, Nameson Holdings (HKG:1982). A vertically integrated knitwear and fabrics manufacturer with most of its production base in Vietnam and some of it still in China.They expanded to Myanmar, which did not work out so well, so they had to take significant write-downs and restructuring costs recently of 243 million HK$.This somewhat obscures their true earnings power.

Avrobio, Inc. operates as a bio-technology company. The Company develops step-change cell and gene therapies for the treatment of cancer and rare disease. Avrobio serves clients in the United States and Canada.

<ul><li>Recently Avrobio (AVRO) announced a reverse merger with Tectonic Therapeutic, which was a bit unexpected.</li><li>And disappointing. From what I have read from people more knowledgeable about biotechs, they have some promising treatments in development with pretty impressive insiders.</li><li>But I have no idea how to value this. Net cash will be &lt;$1/share post merger so I am closing this with a small loss at $1.25.</li></ul>

Recently Avrobio (AVRO) announced a reverse merger with Tectonic Therapeutic, which was a bit unexpected.And disappointing. From what I have read from people more knowledgeable about biotechs, they have some promising treatments in development with pretty impressive insiders.But I have no idea how to value this. Net cash will be &lt;$1/share post merger so I am closing this with a small loss at $1.25.