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Originally Posted by wutamess
Who's still long in IQ? BEen waiting for you guys to post the next best thing. WTF is HF when you need him?
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The next hype stock IPO was UXIN. Right before it was set to IPO Huya, IQ, etc. started tanking a bit amid trade war fears and just general hey if you go up 100% in a month or whatever you're probably going back down.
The kids were saying Carmax of China! Which doesn't sound that exciting to be honest lol
I spent a couple of hours reading through their F1. They're taking on debt like crazy. I think they spent 96 and 102% of revenue in marketing alone the last two years. They'd gained market share from it. Can't remember exactly but they went from 34 or so to 42% of used car sales.
Apparently, in China car loans work like homes here. New cars you can only get a loan for 80% of the value. Used cars 70%. Electrics can get more
If I invest in China, I like companies where some other company I trust has invested in them. Then I know they've done their DD and it's a real company and not a scam. Unlike many of the other stocks we talked about this isn't the case AFAIK with Uxin. I consider this pretty risky and only looked into it in the hopes of riding the new china stock hype wave. It died a bit right before this IPO'd and this stock has gone down a bit since IPO like all of China stocks.
All that said, if their numbers are real their revenue growth is huge. 130+% annually. It is sort of intriguing. I'm worried about chinese scams, I imagine so are Chinese people right? A good reason to go to the Carmax of China?
If I remember right they allow returns for 30 days. They pointed out a lot of stats that showed Chinese consumers have way less cars than in the US. Makes sense.. many of them haven't have the money. I sort of suspect some of that is China building out more public transportation than we have too.