| Stock (Symbol) | Stock Price | |
YY (YY) |
$63 |
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| Data is as of | Expected to Report | Sector |
December 9, 2014 |
Mar 02 – Mar 06 |
Technology |
| Sharek’s Take | ||
 YY, a Chinese social network, has enormous upside potential going into 2015. YY is one of the fastest growing companies in the world, here’s what the revenue breakdown was last qtr:
Management thinks music sales growth will slow to industry standards, but online dating will be a driver of growth, with online education on the horizon. YY has been doubling revenues each qtr, but the company forecasts 45% to 50% sales growth in 2015. YY’s P/E is just 16, half the 32 it was last qtr. Some of this is due to a correction, and some because we are looking ahead to 2015 profits. A 50% grower at 16x earnings? There’s HUGE upside here, the most of any stock in my universe. YY is my top stock to own going into 2015. |
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| One-Year Chart | ||
 YY’s Est. LTG dropped from 89% to 71% this qtr, but still 71% growth for the next 3-to-5 years would be great. Last qtr was the 1st qtr YY didn’t put out triple-digit growth and some money managers might have sold due to that. Note Annual Profits, strong growth each year. The P/E of just 16 is hard to fathom. Perhaps YY will go on a tear? |
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| Earnings Table | ||
 YY had revenue growth of 104% last qtr and profits jumped 85%.The company crushed analyst estimates again, and these estimates jumped a qtr earlier. Strong momentum here. Annual Profit Estimates increased, but not at the rate they did last qtr, perhaps due to YY’s cautions comments on music sales. Estimates for the next four quarters look solid, I’m guessing YY will grow profits 50% in 2015. |
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| Fair Value | ||
 This stock is insanely cheap, and could compound in value during the next two years. I think this $63 stock could rise close to $100 to $159 in 2015, and then climb to $225 by 2016. And I even dropped my Fair Value P/E from 55 to 40 because Annual Profit Estimates didn’t increase much. |
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| Ten-Year Chart | ||
 Perhaps this stock needed a breather after the strong run-up the past two years. Back when I first started following the company in 2013 it has enormous potential like it does now. Maybe YY is setting up for another big run higher? |
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| Power Ranking | Bottom Line | |
Growth Portfolio
1 of 23 |
YY is set up perfectly for a big run higher. It’s got two big things going for it (1) it does business via the Internet, which allows it to expand rapidly and (2) it’s located in China where there is huge potential. At 16x earnings with 50% growth this company is a bargain and I feel the stock will compound in value in the coming years. |
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Aggressive Growth Portfolio
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