4/29 Daily Market Note: DCF Conclusion Study on Pinduoduo (PDD)
How much upside does PDD have for Investors?
Hey Everyone,
While we wait for macro outcomes to play out from the upcoming May FOMC, the Quarterly Treasury Refunding, and further FAAMG earnings, I’m going to share my next DCF Conclusion Study - this one of my favorite names within my China coverage Pinduoduo (PDD).
Members know that when it comes to stock-selection and setting entry/exit plans, my DCF Conclusion Studies play a important role in my decision making.
It has helped our Community to find areas of significant value in the FAAMG stocks for intermediate-term positioning (link to educational guide) over the past 30-60 days.
Google at 130 (DCF Conclusion Study Bear Case)
Tesla at 140 (DCF Conclusion Study Bear Case)
Apple at 160 (DCF Conclusion Study Bear Case)
MSFT at 395 (DCF Conclusion Study reiterating high probability target of 425+)
Within my coverage for China, Pinduoduo is one of my favorite trading names because of their successful TEMU marketplace in the U.S. (strong fundamentals) and the stock also has decent range expansion opportunity when it enters a bullish sequence.
After PDD successfully made a bullish sequence from 110 to 130, I will now use my DCF Conclusion Study to understand potential areas of value.
In the future, I will have more China names DCF Conclusion Studies. I will do one on retail favorite Alibaba soon. They do take considerable amount of time to create/write-up so thank you for your patience as I will drip them out over time!
Let’s talk about PDD! We’ll talk about the following:
If we stress test PDD, what is this company worth even in a Bear Case?
What are the regions to watch for accumulation?
What is a realistic exit target for PDD within 18 months? There is definitely still more upside in this one, so we’ll discuss below.