Still I've had 40% in cash. That's not how to beat the market. That's why I need more shares for my portfolio. This time I've bought YY Inc shares.
Let's see why I've invested in YY. That's 10 answers about YY.
Communication social platform - Chinese internet.
2. Competitive Advantage
I don't know Chinese social platform very well. They grow really fast so must have a few.
3. Chief Executive Officer (CEO)
Jun Lei since 2005
4. Revenue Growth
More than 100% y/y.
5. Net Income
Grows much more than revenue. Small drop last year.
6. Profit Margin
~19% Between 20 and 35% before.
7. Debt-to-Equity Ratio
0.8 which is quite much but not so much for company which grows so fast.
8. Price-to-Earnings Ratio (P/E)
22.3 which is quite ok for me.
YY grows and grows and it looks they will.
Chinese market, quite high stock price, growth can slow
I'm big fan of YY Inc. Strong revenue growth, positive and growing net cashflow from operations, negative and decreasing investing net cashflow. These are YY's advantages. I see profits from these stocks.