This first appeared in the Seeking Alpha Marketplace service DGI Across North America, from which you can get real-time buy and sell alerts (and explanations) when I make moves in my portfolio.
- NetEase up 10.4% on Monday. My position is up nearly 17% in a little over 2 months.
- News came out that it plans to buy ~$11 billion of inventory over the next 3 years from the U.S., Europe, and Japan to sell to the Chinese market.
- NetEase is primarily a video game publisher in China that has been diversifying into e-commerce.
- NetEase is reasonably valued after the pop based on the consensus low-end earnings growth estimation.
- Interested investors can nibble here to start a position, but will be safer to buy on a meaningful dip — perhaps one will occur when the company reports Q3 results on Nov 15.
Occasionally, dividend–focused portfolios need some growth to spice things up. And NetEase Inc. (ADR) (NASDAQ:NTES) is a good candidate for consideration.
NetEase stock appreciated 10.4% on Monday. In the DGI Across North America service, I gave a real-time alert and the reasoning for buying NetEase, which is now up nearly 17% in a little over 2 months.
The following quotes are excerpts from my previous article that’s available in the service.
NetEase was founded in 1997 and has been listed on the NASDAQ since June 30, 2000. Even for an investment that was made at the end of 2007 would have delivered an annualized return of 32%!
This outperformed Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) which has delivered an annualized return of 10.8% in the period, Baidu (ADR)(NASDAQ:BIDU): 19.6%, and even Amazon (NASDAQ:AMZN): 27.2%.
NetEase is the second-largest video game publisher in China.
In 2016, NetEase generated 73.3% of its revenue from its online games.
Source: Company Q2 2017 presentation – Slide 6