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I’ve been thinking about adding an eSports stock to my long-term portfolio because of the huge potential for growth in that industry. I am particularly interested in Chinese eSports stocks like HUYA, BILI, and TCEHY, but I am not limiting myself to these and I’m looking at other plays like ATVI, EA, and TTWO. Early on, I kind of like HUYA because it is a little more diversified then a pure eSports play like BILI, but I have only just begun my research and I’m interested in other opinions. Have any of you done any due diligence on these stocks that you’d be willing to share ?
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Didn’t get any feedback on this
, but, if anyone is interested, I decided I liked both TCEHY and HUYA. I thought TCEHY’s valuation in the $40’s was too good to pass up, so I took a position. I think HUYA is more of an eSports play and I like its potential for growth in this niche, but I haven’t seen an entry that I liked yet, so I am holding off until I do.
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I rolled the dice on HUYA today at $25.10. Even at this price, which looks attractive, I am a little nervous about adding another buy and hold to my long term account in this market (In my trading account, I was 100% short today as there was plenty of blood in the water). The HUYA chart isn’t exactly screaming buy here, but I am hoping that after two gaps down, it is exhausted and will bounce a little, giving me a little cushion on my entry while I wait it out for the longer term. The daily bar hasn’t fully formed yet, but it sure looks like it is bouncing already. My TCEHY position is a little beat up after two gaps down, but that entry was based on valuation as much as chart (I entered at what I thought was a 50% Fibonacci retracement on the weekly and a bounce on the daily). I still believe that any position in the $40’s is a good one for TCEHY. Morningstar has TCEHY fair value at $82, and every makeshift fair value calculation I have done puts the valuation well above the $61 high at which it recently traded. I have about a $3 hole to dig out on it now, but I think (
) I’ll Be OK (Did I just jinx myself?). Chinese stocks are taking a beating right now, I assume because of concerns over Turkey and trade tariffs, so we’ll just have to see. I now have positions in three Chinese stocks so I have a little exposure.
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IQ certainly looks interesting at these levels. Chartwise, it actually looks a lot better than HUYA. There is a natural stop just below the last pivot at 24.58. The only downside is that there is overhead resistance at 30 and again at 32 that the stock has to chew through, so it might not be the greatest short term swing play. I’ve seen some analysis that really believes in this stock’s long term potential, however, so you could enter here for the long term play with a fairly tight stop (for a long term play with a lot of upside). Of course, it’s also a Chinese stock and we have this trade war going on now, but, personally, I believe that’s going to be resolved, and I’m not sure how much that affects IQ anyway. Just throwing that out there for anyone interested.Comment
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Sorry you didn't get feedback, but I love these threads where we capture the thought process behind a position and then see the results later on. It makes for good educational material for the rest of us doing our DD on other investment ideas. Thanks for posting this.Math doesn't lie, but people do.Comment
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If it helps, blindsquirrel, I’m glad to share. I also find that sometimes thinking out loud helps me with my process.Comment
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