Per the text box on the chart, we have explained why this company is completely bullish on a fundamental basis. MOMO is a free cash flow machine gaining growth in an industry with very few players. Their revenue growth seems like they're truly expanding as opposed to fluffing up the financial statements through different accounting methods. One thing that is always a good thing to keep in mind is the currency exchange, since MOMO is based in China. This can have an affect, of course, but we don't see the damage too rough since the USD has faded a bit. We expect it to go up, but we think the yuan will as well (attributed to Chinese expansion through Russian trade and the Silk Road). All in all we are definitely bullish and are looking to accumulate a stake soon.
Note: Waiting after earnings to make sure this is not a fluke to hold bigger stake.
Alden Investment publications are only meant for viewing pleasure and not to be taken in as financial advice or anything related to such.
Note: Waiting after earnings to make sure this is not a fluke to hold bigger stake.
Alden Investment publications are only meant for viewing pleasure and not to be taken in as financial advice or anything related to such.