- I initiate my coverage on DOYU with a BUY recommendation and a target price of above 3.37 US$ /share, implying an upside potential of 52%.
- This is an opportunity for traders and investors who build their strategy around buying fear.
- The stock price is down -88.48% since July and has now reached ridiculously attractive valuation levels. In fact, the company is trading at negative enterprise value.
- DouYu’s future is uncertain. But we are essentially buying a dollar for less than a dollar, with an upside of around 30% even if we assume no growth.
- Selling volatility, naked put or covered call, will give you an incredible risk-reward opportunity.
For further details see:
DouYu: Now Trading At Truly Crazy Low Levels