r/baba
PDD Stock Analysis - $77 Billion in Cash, $12 Profit on $120 Market Cap...
PDD is deeply undervalued with $77B cash and $12B profit against a mere $120B market cap.
- Massive $77B cash reserves provide a huge safety net and potential for buybacks or dividends.
- Highly profitable with $12B in earnings, showing strong core business fundamentals.
- Extremely cheap valuation with a $120B market cap relative to its massive cash and profit.
There's investing in china and there is investing in stuff like this where the cash is NEVER returned to share holders and financials are likely cooked
So much cash and profit yet zero dividends and zero buybacks.
why would they give dividends and buybacks when those cash flows are better used on continued expansion and improvement of the businesses? This isn’t Ford motor company. Temu didn’t even exist 5 years ago and now it’s one of the biggest e-commerce players on earth and the first to globalize amazons logistics model. With a fraction of the number of employees. purchases are cheaper and easier than other chinese players. Half of my automotive tools, travel kit, niche electronics all came from temu shipped free to europe or asia. Refunds I’ve requested have all been given within 3 minutes without having to ship anything back to the seller.
As a shareholder I’d be mortified if they started paying dividends or doing buybacks. What a stupid use of cash in such a cutthroat competitive environment.
Sigh… this is the umpteen times of me warning against pdd after long years of DD and observation as well as be an on and off shareholder.
But yet sven did not go through the various short reports against pdd. There are lots of smoking gun allegations against management that they have not addressed or brushed off.
Hmmm, I wonder if people simply read the company financial statement and maybe that’s classified as sufficient due dilligence?
What smoking gun allegations? There doesn't seem to be anything of substance.
Take a look at the short report by grizzly research on the inconsistencies in their payment revenue and margins. Their lack of cfo, their poor auditor track record, no buybacks with supposedly record cash. Management who over time reduces the things they declare in their financial statement. I could go on