| Stock (Symbol) | Stock Price | |
YY (YY) |
$90 |
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| Data is as of | Expected to Report | Sector |
August 27, 2014 |
Nov 04 – Nov 10 |
Technology |
| Sharek’s Take | ||
 Today is Alibaba’s IPO, and while all the attention (and $) is flowing that way, investors should be instead looking at YY. YY is the MySpace/Facebook of China, and while shares of Alibaba are skying higher before the open, YY remain undervalued. Expected earnings growth of 67% this year (and that number is rising) at 32 times earnings make this stock a better bargain. I bought YY at $50 last September and it was $90 when this data was compiled. The stock is $79 today as it sold off, probably because funds needed money to buy Alibaba shares. I think YY is worth $152 this year, and $216 next year, and its unknown as to whether Alibaba will be overvalued or not when it opens for trading shortly. YY has an estimated long-term growth rate of 89% per year, and to get that at around 30x earnings is a much better deal than hopping on the Alibaba bandwagon and paying more than 32% over the $68 IPO price. |
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| One-Year Chart | ||
 This data is from 8/27 when YY was $90. Today, 9/19, the stock is $79. So as of now, the P/E is just 29 — maybe half Alibaba’s P/E. I love how profits have been more than doubling each quarter. The Est. LTG just jumped from 35% to 89%, the highest of any stock I can remember. This is a great stock. |
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| Earnings Table | ||
 Profits doubled last quarter as sales increased 103%.YY crushed analyst estimates, which had increased in the previous three qtrs. Wow, this is a money machine. Annual Profit Estimates really jumped this qtr. There’s no telling what YY will make in the future, and stocks like that usually get P/Es of 60 or more. Estimates for the next four quarters are very sound, and all quarters just got big increases. Shift your focus from Alibaba to YY. We know what we’re getting here. |
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| Fair Value | ||
 I think YY’s P/E should at least be 50. At a Fair Value of 55 times earnings this stock is worth $152, around double where it’s selling. I bet funds sold other Chinese shares to have money to purchase Alibaba, and that’s made stocks like YY a bargain. |
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| Ten-Year Chart | ||
 YY had a severe correction which shook out weak shareholders. Now the stock is free to climb again. Notice how profits have gone from $0.61 two years ago to an expected $2.77 this year — and that number continues to rise. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
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YY has sold off from $90 to $79 just since these charts were created just last month. I think that’s created tremendous upside for a company that’s expanding exponentially. YY is a growth stock at a bargain price, and has huge upside. My money says YY outperforms Alibiba during the next year. |
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Aggressive Growth Portfolio
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