Stock (Symbol) |
Tencent Holdings (TCEHY) |
Stock Price |
$78 |
Sector |
Technology |
Data is as of |
May 6, 2021 |
Expected to Report |
May 20 |
Company Description |
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Sharek’s Take |
![]() Tencent has one of the worlds top social network(s) with more than 1.2 billion users. The company has its own versions of Facebook, Google, Netflix and Amazon rolled two apps with Weixin being the app for mainland China and WeChat for people outside China. So from those apps, advertisers can place ads, and users can buy things then pay with Tencent financial apps. Tencent is a technology juggernaut and has grown to encompass everything online in China. Here’s Tencent’s largest 4 divisions:
Tencent is a large stable company that’s grown profis 32% a year the past ten years, with record profits each year. In addition, the company has a vast portfolio of other investments in companies such as Pinduoduo, JD, Sea, Epic Games, Snap, Bilibili, Spotify and Nio that totaled ~$187 billion US dollars in 2020. Investing in TCEHY is like getting a company that’s growing nicely on its own, and also having a portfolio of David Sharek-type stocks thrown in. The Estimated Long Term Growth Rate for TCEHY is 28%, which is high for such a large company. Management also pays out an annual dividend, which rose 33% in 2021. And with a P/E of 31, the stock is cheap (this company is growing around 40% right now). TCEHY is part of the Growth Portfolio. Everything is looking good right now — especially the stock. |
One Year Chart |
![]() Profit growth has been fabulous. I love the accelerating growth the past 4 qtrs. Next qtr looks even better. The Est. LTG of 28% very high for a big company. I even think profit growth will be 35-40% or more in 2021. Growth like that is deserving of a 40-45 P/E. Since the P/E is currently a 31, the stock is a value. |
Earnings Table |
![]() Annual Profit Estimates declined slightly. This is dissapointing as the stock Qtrly profit Estimates are for 55%, 38%, 33% and 32% profit growth the next 4 qtrs. Those figures are awe inspiring! |
Fair Value |
![]() I see 28% upside this year, and 53% upside by the end of 2022. |
Bottom Line |
![]() When Tencent was at $95, I thought it would push past $100 and head to $115. This qtr with the stock at $78 I think its worth $120. If growth stocks go back into favor, my money is on this stock being a market leader again and shooting for $100 and beyond. TCEHY makes a big move up in the Growth Portfolio Power Rankings, jumping from 26th to 3rd. Last qtr when I had the stock ranked lower, speculative stocks were in favor. Now, investors desire certainty and consistency — which Tencent has an abundance of. I will add to my position in the morning. |
Power Rankings |
Growth Stock Portfolio
3 of 41Aggressive Growth Portfolio N/AConservative Stock Portfolio N/A |