Stock (Symbol) |
YY (YY) |
Stock Price |
$64 |
Sector |
| Technology |
Data is as of |
| July 14, 2017 |
Expected to Report |
| Aug 15 |
Company Description |
 YY Inc. (YY) is a social platform that engages users in real-time online group activities through voice, video and text on personal computers and mobile devices. The Company’s segments include YY IVAS and others, Huya broadcasting, and 100 Education. YY enables users to create and organize groups of varying sizes to discover and participate in a range of online activities, including music shows, online games, dating shows, live game broadcasting and e-learning. YY offers users an entertainment experience through its social community. It owns the domain names of YY.com, Duowan.com, 100.com, Huya.com, Edu24ol.com and Zhiniu8.com. Source: Thomson Financial |
Sharek’s Take |
 China’s YY is breaking out in a big way today –as it looks like the company and the stock has turned the corner. YY is a social network in China that provides users with online games, online music, and live game broadcasting. The company makes revenue from advertising and its membership programs. I owned YY years ago, and sold it when it no longer fit the mold. Now it looks like the stock is ready to be a leader once more. Today’s breakout is extreme. It seems like a large investor(s) is getting in on a Friday in Summer when most people have already taken the weekend off. Since this stock hasn’t gone up in three years, there’s a lot of upside here. The P/E is only 12, which is very low compared to the Estimated Long-Term Growth Rate of 22% per year. I will add YY to the Growth Portfolio and Aggressive Growth Portfoli0. |
One Year Chart |
 Wow, profits have been growing rapidly he past three qtrs, and I really like this cup-and-handle chart pattern. Very bullish signs here. And the P/E is just 12. Last qtr YY had a profit of $1.34 which beat estimates by 52 cents. The qtr before the company made $1.41 and beat the street by 30 cents. Qtrly estimates call for 24%, 25%, -3% and -5% profit growth the next 4 qtrs, but it seems like analysts need to up their estimates in the further out qtrs. |
 My Fair Value is 17x earnings, which is reasonable. That would be a $90 stock if YY made $5.32 this year. But this company has lowered estimates in the past (I used to own the stock). Also, this company used to have a different fiscal year end (I think it was June 30th) and now the fiscal year end is December 31st. Thus these prior year profits don’t match up to my tables from prior years. |
Bottom Line |
 YY used to be one of my favorite stocks — and also one of my largest holdings. But profit growth slowed and I had to say buh-bye. Now with profit growth sizzling and the company beating the street this stock fits the mold in a big way. YY will rank ULTI ranks 1st in the Aggressive Growth Portfolio and Growth Portfolio Power Rankings. Visa (V) will move down in the Power Rankings, out of the Aggressive Growth Portfolio. |
Power Rankings |
Growth Stock Portfolio
10 of 33Aggressive Growth Portfolio 10 of 15Conservative Stock Portfolio N/A |
