What's Happening to Qudian Stock?
๐ Qudian Stock $QD gained over 100% YTD and this is the stock I've been buying the most since taking my profits on GameStop $GME . It is currently the second largest position in my portfolio. What's happening to Qudian?
๐ค There's no clear reason why the stock price is going up but I do have some hypotheses (a combination of all this may also be happening):
- China-EU investment deal good for Chinese Fintech. Qudian Stock price started its rise well before that.
- Someone is buying Qudian Stocks - this will cause retail investors then algorithms to buy
- Small stocks have been doing great lately
- Expected better relations between the US and China with the Biden Administration as Chinese stocks in general doing great this year. $MCHI up 16% vs S&P 500 $SPX500 6%.
- Antitrust probe on Alibaba $BABA will favor smaller Chinese companies
๐ฆ Qudian is a ๐ซ๐๐ง๐ฎ ๐ข๐๐จ๐ช๐ฃ๐๐๐ง๐จ๐ฉ๐ค๐ค๐ ๐๐ช๐จ๐๐ฃ๐๐จ๐จ ๐๐ฎ ๐๐๐ก๐ก ๐๐ฉ๐ง๐๐๐ฉ. They are providing credit facilities to the unbanked population of China. In the short-term, the business is being affected by regulations and the pandemic. If they will have to lower their interest rate, it will mean less revenues and profits but over the long-term, this will lower the delinquency rate. Since the potential market is big, they can still grow.
๐ฐ Wall Street also doesn't like Qudian because of all the new businesses they are doing. But if you listen to what the CFO said in an interview on the day of the IPO, they want to generate cash in order to buy other businesses. In some way, they want to be the ๐ฝ๐๐ง๐ ๐จ๐๐๐ง๐ ๐๐๐ฉ๐๐๐ฌ๐๐ฎ ๐ค๐ ๐พ๐๐๐ฃ๐ $BRK.B . Instead of insurance, however, they will use subprime lending. Can they do it? Maybe. But at current valuations, Qudian is a deep value stock.
Watch the full video on YouTube:
https://www.youtube.com/watch?v=RjaidX8QXBI&list=UUPO3uUyoXSaFWG-Ldq1mqEQ&index=1
Hereโs the full analysis of Qudian:
https://ishfaaqpeerally.teachable.com/courses/662813/lectures/27836437
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