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  • Writer's pictureIshfaaq Peerally


The markets $SPX500 opens a little higher as it is expected that interest rates will remain unchanged. Today is one of the worst day for our portfolio this year with $GME reporting disappointing earnings and down by 16%. We are down by about 1%. Am I disappointed with the earnings? A little. However, I must say that my long-term thesis for GameStop didn't change. It is still a great investment,. The company is still trading under book value and under its intrinsic. I've made an analysis of these earnings, you can access it for free here:

I'll make a video about GameStop soon.

As for the other stocks in our portfolio, $SWKS and $POLY.L are up by 1.5%. That's why one should have uncorrelated assets in a portfolio, if one stock goes down, others will counter the bad performance.


I have been saying in recent weeks that now is the time to invest in China. I'm still looking at the companies but the first one on my watchlist is China Mobile. China Mobile $CHL $0941.HK is the largest network operator in the world with 942 million subscribers. Verizon $VZ or AT&T $T are not even close to compete with China Mobile. They are the largest network operator in Mainland China, Hong Kong and the fourth largest in Pakistan through their subsidiary, Zong. 75% of the company is owned by the Chinese government.

China Mobile has a moat. In China, there are only three network operators, China Mobile, China Telecom $0728.HK and China Unicom $0762.HK . China Mobile has 70% of market share. China Telecom started with fixed-line phones and only recently entered the mobile phone market. Most people in China uses data from their mobile phones to connect to the internet instead of Wi-Fi like in the West and that's how China Mobile always remained ahead of China Telecom. As for China Unicom, what makes them different from the rest is that, they provide lower prices and are growing at the fastest rate. But when it comes to profit margin, they have the lowest one while China Mobile has the highest profit margin of the three. China Mobile is also the one at the best price right now. Most people in China uses data from their mobile phones to connect to the internet instead of Wi-Fi like in the West. Another advantage that China Mobile has is that it is growing internationally. This company has a moat. It is hard for competitors in China to compete with it, the government is financing the business and they don't have to deal with US competitors. It is not like Huawei, having to compete with Apple $AAPL and Qualcomm $QCOM. It is always hard to compete with US companies.

China wants to be the next Superpower and they are investing a lot in technology, especially 5G and IOT. China Mobile is going to profit a lot from this as they are leading this revolution. Even in the case that 5G fails, they still have the 4G and 3G business. Network operators are like utilities, they are always going to make money.

Last year, revenues of the company fell and that's because the Chinese government abolished roaming charges. Even China Telecom and China Unicom had lower revenues. They have a great balance sheet without any debt. They are now trading around book value.

After analyzing all the risks of the company and estimating the intrinsic value, I must say that China Mobile is at a discount. However, I'm not going to buy right now. I want to look at other Chinese companies first. There are so many sectors to look at in China and there is no need to rush.

Watch the full video on YouTube:

You can see the whole analysis of China Mobile here:

Join my private investing group on Facebook for more:

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