| Stock (Symbol) | Stock Price | |
YY (YY) |
$62 |
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| Data is as of | Expected to Report | Sector |
May 28, 2014 |
Jul 28 – Aug 1 |
Technology |
| Sharek’s Take | ||
 I feel YY is a combination of a Facebook/MySpace, and gives us a legitimate player in China’s social media market. Here’s some impressive stats from last qtr:
Since last quarter YY’s P/E has dropped from 33 to 26, and the stock has the most upside to its Fair Value — 75% — of any stock I own. It’s also buying back $100 million in stock, and the market cap is only $2.1 billion. The only negatives are the company could have beaten the street by more, and upped estimates more. |
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| One-Year Chart | ||
 This chart looks great. I love the correction, now the stock seems to be building a cup. Profits are growing at triple-digit rates yet the P/E is only 26. The Est. LTG dropped from 46% to 35% this qtr. Look at profits since 2012, from $0.61 to maybe $2.39. |
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| Earnings Table | ||
 Revenue and profits more than doubled. Sales increased 112% and profits surged 143%.YY did beat the street by 7 cents, but it had been beating by 14 to 16 cents a quarter. That’s slowing momentum. Annual Profit Estimates only edged higher after surging a quarter earlier. The company expects revenue growth of 82% to 85% next quarter. Triple digit profit growth could also continue into next qtr. |
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| Fair Value | ||
 It’s really mind-boggling this stock hasn’t gotten a higher P/E since it went public in 2012. I think profits are soaring so fast that its hard for the stock to keep up. 75% upside to 2014’s Fair Value, 145% upside to 2015’s. |
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| Ten-Year Chart | ||
 This stock needed a correction. Last quarter I complained the stock went parabolic. Now the trendline looks normal. I think YY is free to go on another run now. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
7 of 25 |
YY gives us an investment in a rapidly growing, highly profitable social media company in China. You get triple-digit growth for only 26 times earnings. This stock has the most upside to its Fair Value of any I own. The only negative is estimates could have gone higher. |
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Aggressive Growth Portfolio
7 of 12 |
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