The shares of this Chinese internet company continue to look attractive, technically and fundamentally. The company beat last quarter’s earnings estimates by $0.55 per share.
Top Picks Update
YY Inc. (YY)
From Cotton’s Technically Speaking
We like YY Inc. (YY), a Chinese social media Internet company that offers a community social platform and live streaming services, and bought some during weakness in the last week of December 2016.
The stock is up strongly from our original December 30, 2016 recommendation. The stock is strong and getting stronger. The company’s reported first quarter net revenue was up 37.4%, to $329.3 Million from the 1st Quarter 2016. Net Income attributable to YY increased 160.7%, to $78.9 million versus the 1st Quarter 2016, and YY is projecting year-over-year net revenue growth of approximately 23.7% to 28.7%.
As you can see below, the stock broke out of a 2-Year downward channel about 2 weeks ago, and we believe it will get to $80 per share by the end of the year. We bought the YY July 21 57.50 call today for $2.01.
Closing Price 6/30/17 - $58.08
Joseph Cotton, Cotton’s Technically Speaking, www.cottonstocks.net, 727-289-4436, June 30, 2017