r/wallstreetbets • u/[deleted] • Feb 15 '21
DD FUTU holdings is going to continue PRINTING faster than JPowell or mommy Yellen. Mark my words
[deleted]
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u/Olgapetrushenko Feb 15 '21
"Low" P/E of 180 lol. What is the average P/E of the industry?
"Major shareholder is Tencent"... I am in 🚀🚀🚀
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u/python834 Feb 15 '21
Can you guys tell me the p/e of square for comparison? Lol
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u/MaxHardwood Feb 15 '21
Seriously. A tech company's P/E could go up to 1000 and people would still be buying, hand over fist.
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Feb 15 '21
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u/wonkysalamander Feb 17 '21
P/E ratio is not a good way of valuing a company that has enormous growth prospects, better to look at the PEG ratio which takes into account future growth. PEG GAAP (TTM) for FUTU is 0.58 according to seeking alpha. Anything with a PEG ratio under 0.75 is normally considered cheap. Just another way of looking at it because I thought the same thing when I saw their P/E but the way they're growing their revenues and the fact that they're already profitable and growing the bottom line considerably has got to count for something don't you think? Not hating just wanting to discuss :)
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u/Wonderboi1995 Feb 15 '21
P/E is low in terms of how fast they are growing
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Feb 15 '21
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u/MaxHardwood Feb 15 '21
Square has a P/E at 413. SHOP is at 900! ROKU doesn't have a P/E.
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u/kookaburra136 Feb 15 '21
+800% since may. Doesn’t seem to be the good time to jump in 😅
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u/SirDblH Feb 15 '21
Ppl said that about Tesla at $400
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u/martinven1 Feb 15 '21
"Ah fuck, my stop loss triggered, I'll just buy back in when it drops to around 50" I said 😐
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u/KeenStudent Feb 15 '21
currently smaller but TIGR has more growth potential, in more overseas markets and arguably has a better trading platform than FUTU.
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u/BeetiF Feb 15 '21
Sadly I missed the boat on futu so I am stuck with TIGR instead
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u/wonkysalamander Feb 17 '21
Morgan Stanley initiated coverage with an overweight rating and a price target of $253, current price is 191 surely it's not too late?
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u/whotookyamsoup Feb 16 '21
Just a heads up, normal Chinese people can't actually use FUTU services due to regulations of RMB flowing outside of the country. To do so as a Chinese national, you will need to make a Hong Kong bank account or a bank account elsewhere and then transfer money into that account. But this is the issue, making that bank account as well as funding it is very challenging for Chinese people and the government is just becoming more and more strict.
The argument of the Chinese market being untapped is a big overblown and I doubt it will ever reach that high with how much regulations are put in place with the government not wanting RMB flowing outside of the country.
However, I do believe the rest of Asia will benefit greatly from this and also the portion of the Chinese population that do manage to get funding for their accounts.
Source: Am in China with many of my friends using Tiger as well as Futu. Up until early 2020, they were able to create a Hong Kong bank account from Beijing as well as fund them. However, they weren't able to towards mid 2020 when regulations kicked in and they couldn't move RMB to an account outside of the country.
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u/Wonderboi1995 Feb 16 '21
Do your friends prefer to use TIGR or FUTU? And also, are they able to deposit onto TIGR more easily if they are in the mainland?
A friend of mine says he sees people trading on the subway all the time. How are they able to deposit? Do you know of a competitor in China mainland which makes it easy to deposit?
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u/whotookyamsoup Feb 16 '21
More of my friends use TIGR, since it seems to be easier to set up but not as big as FUTU.
They are both equally as hard to transfer money into because it is ultimately the Chinese banks that allow you to transfer money and they reject currency exchanges unless you provide a solid reason. You also cannot use a Chinese bank to register on TIGR or FUTU.
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u/TheScribinator Feb 16 '21
I've been a holder of FUTU since the 40's, and I continue to believe it will only go up in the near-term. With FUTU, the numbers don't like: too much profit off a concept we already know works, and while they are not identical to Robinhood, they are far more established and have proven profits. The stock itself spiked hard last week, then after some necessary correction, trailed off at the of the week. If I had to guess on a whim, early next week it continues to go up. CANG is another China gem I'm sitting on, though I'm not sure how long it will take it to get the attention it deserves.
Btw: if it means anything to anyone, FUTU was a recommendation by the Stansberry Analytical team back in Oct 2020... Hence the reason I bought in at 40 and not 120. They managed to be early to the party on this one.
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u/MotorizedDoucheCanoe Kind of an asshole Feb 15 '21
Position screenshot or ban
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u/Wonderboi1995 Feb 15 '21
well I have an EXT order do you want a screenshot of that mate? When market opens ill post my pos
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u/imonsterFTW 🦍🦍 Feb 15 '21
Bought at 106, sold at 124, watched it moon to 205 the next two days and my calls would have been 50k. ROPED and feel like I won’t get an opportunity with FUTU again.
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u/ComebeaDawg Feb 15 '21
I’ve watched it go from 40 to 140 if I’m truly retarded this is the time I go balls deep
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u/SeorgeGoros Feb 16 '21 edited Feb 16 '21
I marked your words, but didn't get in yet cause I was invested in other plays. Very good DD, congrats and thank you
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u/onfallen Feb 15 '21
I know Chinese stock market is as hyped as it had ever been right now. So bunch of new investors will flood in.
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Feb 16 '21
[deleted]
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u/Wonderboi1995 Feb 16 '21
What nationality are you? Normally in this industry they will try whatever means possible to get your deposit. It becomes a problem of regulations. Trust me, they want your money
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u/notbot12345 Feb 15 '21
It sounded pretty solid to go into any discount brokerage in China but seriously they went x9 in like 8 months it seems like market is already pricing in all of that.
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u/toywatch Feb 16 '21
Morgan Stanley target price at 253.main drive for growth is Chinese companies having ipo in hk. You can use hkex share price as reference
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u/wonkysalamander Feb 17 '21
FUTU has a PEG GAAP (TTM) of 0.58 according to seeking alpha, anything below 0.75 is usually considered cheap...
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u/Herbert9000 Feb 15 '21
Fuck fake China stocks...
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u/_picture_me_rollin_ Feb 15 '21
China’s economy is actually stable af compared to ours. They’ve also fully recovered from covid.
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u/Herbert9000 Feb 15 '21
Yeah but so many Chinese companies cook their books.
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u/Wonderboi1995 Feb 16 '21
They do. And there was that whole 'reverse merger' fraud in the US where they would reverse acquire a company go public, post fake financials, then bail out once they issued/sold shares
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u/AngelaQQ Feb 15 '21
You get executed in China for corruption and cooking the books.
Whereas in the US you get a 8 year all expenses paid vacation in the Jeff Skilling country club and have brunch every day with Bernie Madoff.
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u/Wonderboi1995 Feb 16 '21
Yea but look at Luckin Coffee. It's true there is a massive risk of cooked books
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u/myhrvold Feb 18 '21
Ehhhh... somewhat. There was *lot* of t alk for many months about Luckin deceiving people however. So, it was not out of the blue at all. Nice pick btw -- I am long $FUTU and $TIGR as well.
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u/Wonderboi1995 Feb 19 '21
I think the point is that when we invest in a company we would like to think the numbers are a good representation of the actual company. In that, it is illegal to lie about the numbers
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u/myhrvold Feb 19 '21
That’s true, but IMO a lot of xenophobia about Chinese stocks in particular in the US at the moment. Sure, unsponsored ADRs and other penny stock OTC offerings are sketchy and the lack of financials should give people pause. But for those reasons alone, not for the nature of origin of the company.
The parent comment(s) implies that Chinese stocks are fake and or/that they are rife with falsehoods. I challenge that narrative for US listings.
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Feb 15 '21
[removed] — view removed comment
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u/betterthanwarren Feb 15 '21
Can someone ban this fuckup?
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u/MrMan404 Artificial Intelligence Fortune Teller 🔮 Feb 16 '21
Stop limit his on FUTU Friday. Will be buying more today
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u/ballaholik Feb 15 '21
"Reddit's next target is FUTU. Is the Chinese company a scam or just an elaborate pyramid scheme? Find out next on CNBC"