- Tencent continues to report high growth rates with revenue increasing 25% and EPS increasing 64% last quarter.
- But the stock declined almost 30% over the last few months due to concerns about the Chinese government and a potential delisting.
- When fading out these risks, we are actually looking at a high quality business with a wide economic moat.
- And the fear and pessimism is creating a real bargain as Tencent is trading below intrinsic value - even when calculating with conservative growth assumptions.
For further details see:
Tencent: When Pessimism Is Creating A Buying Opportunity