U.S. stock Experience: How much is Dangdang worth?

Starting in 2014, I've been sharing my years of experience with U.S. stocks through several of my media platforms (although few people are currently investing in U.S. stocks). I didn't think because before the domestic few people write column analysis and explain the U.S. stocks, my column received a lot of consulting stock choice of things, generally to avoid suspicion I rarely and netizens recommend investment which stock, I answer only one sentence: invest in those who really valuable companies!

In China's a-share market, a company's stock is good or bad in addition to its own operation there will be a lot of invisible factors, but in the United States market, the U.S. stock market enterprises are generally not very affected by the concept of speculation, basically a company in the rise of stocks will rise, and vice versa. We can see that in the past two years, Sohu, NetEase, Sina and other enterprises of the stock and their enterprise income scale, have entered the bottleneck, the opposite view only goods will, where to go and other corporate income is doubling every year, stocks are almost doubled or even more.

However, some enterprises because of the operation of the business, although the user's approval to live, however, there is not enough time to be recognized by the market, resulting in a very inconsistent with the value of their real values, more typical enterprises, I think at least three, respectively, 360, 58 with the city, Dangdang. My estimate for 360 is---50 billion dollars, the valuation of 58 per cent---30 billion U.S. dollars, the value of Dangdang is 10 billion dollars, and in order to prevent everyone to doubt that I "stand talking Pain", I took out more than 30% of my personal cash, have invested in these enterprises, Use the actual action to verify that my judgment is accurate, from 2014 to now half of the past, you can check the stock growth of these companies, these data are open, you can roughly understand how much of my wealth in the last six months.

Since 58 and 360 I have written for analysis, interested friends can go to Baidu search. Today I'm going to analyze why Dangdang is a company worth 10 billion of dollars.

Buying stocks depends on fundamentals

June 16, Ali updated the prospectus, China's electricity business shares a wail, the United States and Beijing East Qi-Qi plunged. And on the same day, there are comments in the domestic old song again sing decline, Dangdang again bucking the trend. Why?

Scale is not the first standard of evaluation of listed companies in the U.S. market, the company's growth and profitability is the benchmark of the U.S. market forever. For short-term investors, when the obvious low valuation means a greater appreciation of space for the long-term investors in Europe and the United States, when the continued improvement in profitability and the steady rise in performance is its choice of natural haven.

As I have said before, if you do not understand the U.S. and want to invest in U.S. stocks also does not matter, you need to do is to study and understand your target enterprise, and stock trend map and other information can be left aside.

Take Dangdang as an example, we only need to look at a few data is enough, respectively: ①2013 total turnover of 10.2 billion; 2, 2014 Q1 turnover 3 billion, up 54%;3, 2014 first quarter to achieve profit; 4, mobile end traffic accounted for more than 45%.

Data is boring, but through the data we can draw some data behind the information, Dangdang in the guarantee of profitability of the situation to achieve rapid growth (electricity business is not easy to profit, market share and financial losses are often a pair of knots), and mobile end accounted for nearly half. Through the data I can confirm that: if Dangdang does not consider profitability, regardless of mobile end strategy, in 2013 can achieve 15 billion or even higher turnover!

In addition, Dangdang has been profitable for two consecutive quarters, to the capital market to prove its own high sustainable growth, which is a vital signal for medium and long-term investors.

On the real value of the figurative Dangdang

The heat of the real valuation of Dangdang originated in May, the United States and the Beijing-East has been listed successively.

On the evening of June 16, I deliberately checked the market capitalisation or valuations of China's major e-commerce websites. Jingdong's current market value of 40 billion U.S. dollars, only goods will be about 10 billion U.S. dollars, poly-US excellent goods for 4 billion U.S. dollars, and not listed Alibaba valuation was fired to the 1500---200 billion dollars. By contrast, Dangdang's market value is only about 900 million U.S. dollars, and at the same time Dangdang's sales of about 10 billion yuan, compared to the Beijing-East 2013 100 billion turnover, only the goods will be 10 billion, poly beautiful products 5 billion, Alibaba's nearly 1.5 trillion (Taobao, cat, poly, etc. total), Dangdang's valuation should be at least 5 billion dollars----, if 3---5 years, it is entirely possible to rise to 10 billion dollars.

Both institutional investors and the domestic retail sector have said that the slot can not understand. From various data analysis angle, has the expert to do the professional interpretation. Don't repeat it here.

There is a chance of comparison. The capital markets have also seen this highly uncoordinated market value gap and are gradually boosting Dangdang's share price. As we can see from the above figure, in the last one months, Dangdang's shares rose from 9 U.S. dollars to 12 U.S. dollars, or about 30%, and in June last year, Dangdang's share price of 6 dollars, that is, if you last year to invest 10,000 dollars to buy Dangdang stock today, even if the dividend is not considered today, will also increase your wealth by 100%.

Of course, this does not mean that Dangdang will be as soar as the only goods will be unattainable, but within the foreseeable 1 years, when the stock price will have a repair upgrade until the market value of other dealers to achieve a reasonable level.

To say a few words, I also boldly predict in advance which stocks will be beaten back to the original, return to a certain reasonable range, one of the typical representatives is the only products and Poly-Mei excellent products, the two companies currently have 10 billion U.S. dollars and 4 billion U.S. dollars in market capitalisation, but the company's own energy and market value is very mismatched, The current high value of the stock is only a temporary boom, and eventually will be due to fake goods, tort, class action and other predictable stock fall.

When writing this article, there are a lot of investors to consult me on the U.S. stock investment issues, consulting my part of the people that did not look carefully at what I have written before, today I once again put the U.S. stock investment literacy a post, everyone in accordance with my written water, as long as it is not a primary culture, can be relatively simple to invest in U.S. stocks, buy 58, when, 360 company shares.

The appendix reads as follows:

Step one: A passport is first issued without a passport. U.S. stocks as the name suggests that the US market shares, our mainland residents of the identity card can not be used as proof of the relevant documents, so need to transact a passport. The passport can be processed in your domicile place it is best to make an appointment online, so you can go directly to the Municipal Public Security Bureau to deal with, and do not have to pass the village police station-the county Public Security Bureau-the city Public Security bureau such cumbersome steps, can also be in Beijing, where you work, the price is generally more than 200 yuan, From the application to the general issued 10 days or so.

Step two: Select a broker. Stocks in China need brokerages, investment in U.S. stocks of course also need to find a reliable brokerage, U.S. stock brokers have sites can be online to open an account (note: This is to apply for an account, rather than complete the entire opening process online), but most of the sites are in English. Fortunately, in recent years with the Chinese fry the stock of the group's growing, there are some securities companies are supporting the Simplified Chinese, one of the best is the first financial (there is no advertising means, I compared all the support of Chinese-language operation of the U.S. securities brokerage, the first financial transactions, whether it is trading commissions or easy to operate, are superior choice). Then in the brokerage site for the account application, this time can be the online chat window open, the other party will be free to conduct the entire Chinese guide, to complete the registration link.

The third step: give you selected Broker courier information. Many people will be surprised, why the Internet does not take all the process to finish, but also need express information. This is because the courier information needs your signature, and the U.S. law stipulates that W-8ben form such information also have to sign courier. According to the securities broker (different brokers need information may not be the same), the information sent to the specified address. Some people may not send a courier to the United States, do not know the price, but also do not know which international express Company to choose. According to my experience, can go to Taobao or 58 with the city, search the federal or DHL study such keywords, because the students can be cheap 1 time times, that is, can be cheap from 300 yuan to more than 100 yuan, and these express companies in Beijing have offices will come to pick up the pieces (of course, Many times in fact is also a small intermediary company agent, will help us to fill in the address. Then, about 3---7 days can be served for the purpose of time. Of course, not bad money friends can choose the full price of the express, generally from Beijing to New York also 2 days.

Step fourth: Inject money into your U.S. stock account. Everything is in the wind. When you send out courier information, you can use the domestic bank account for Cross-border remittance. Many people go to Baidu search how to give money to foreign bank accounts, most of the answer is to let you go to the bank counter to fill out a list, and then the remittance. But now it's been 2014 years, most of the commercial banks support direct Cross-border remittance, I chose ICBC's online remittance (there is no advertising, ICBC is the most common commercial banks, Cross-border remittances the most convenient fees, the cheapest, The Minsheng bank, which we often praise, is well served, but the Cross-border remittance fee is too expensive, the ICBC service is not good but the procedure fee is cheap), because everybody knows some reasons, now Chinese citizens to the United States remittance, a year only 50,000 dollar quota, the money many friends may borrow several ID cards with the relatives and friends to be possible, If individual tyrants want to remit millions of to tens of millions of dollars, please go to the foreign exchange administration to apply.

Step Fifth: Start buying stocks. This step is very simple, as mentioned in the first financial brokerage such as the support of Chinese, the interface is very friendly, in short this link primary school third grade children can operate the stock, Apple, Google, Baidu, Facebook and other high-quality stocks in the A-share market could not buy, but in the U.S. market move the mouse is completed, And the U.S. stock market does not have the T 1 limit, within one hours I have to buy and sell a single share many times. It is worth mentioning that the U.S. stock market does not have "a few hands" restrictions, that is, you can buy at least 1 shares, such as Dangdang, you spend 12 of dollars to invest in this business, become Dangdang's small shareholders. In contrast, the Hong Kong market threshold is too high, Tencent as an example, 500 shares for the hand, Tencent's stock price is about 110 HKD, that is, you have to invest in Tencent, at least nearly 60,000 Hong Kong dollars.

PS: In addition to the United States, China's Internet companies listed another option is Hong Kong, I have also written to the Hong Kong market to buy the Internet Enterprise Stock Tutorial, interested friends can go to Baidu search.