TCTZF - Forget Netflix - Buy Tencent At Less Than Half The Multiple With More Growth
- Tencent equity has sold off despite remarkable 30% revenue and earnings growth figures.
- The Biden administration appears likely to continue Trump’s aggressive listing requirements for Chinese companies.
- De-listing fears, as well as increasing regulatory scrutiny from Chinese officials have created a perfect buying storm here.
- At 24x earnings, net of cash and the company’s equity stakes, TCEHY is now trading near seven year valuation lows.
- With Tencent already in compliance with new financial regs, it appears that regulatory fears are overblown today.
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Forget Netflix - Buy Tencent At Less Than Half The Multiple With More Growth