IQ iQiyi streaming platform in china could do well over 5 years
3.44$ stock seems to be a deep value play. Tangible book is near at 1.85.
Already earning .41 for 2023 and expected to earn .49 in 2024, IQ has a forward earnings yield of over 14%. In addition to low Price to earnings, the growth potential expected is over 20% to as 38%.
Plotting out the growth to 2029 and using optimistic growth stock multiples, a stock like IQ could be worth between 47 and 94 dollars using PEG (price to earning growth) valuations of 1x growth and 2x growth.
That being said, thats the rosy optimistic case, there is also a very bad bear case that recognizes china is in a deflationary real estate down spiral and also surrounded by geopolitical risk. Some economists mention potential currency devaluation to factor the deflation issues in real estate overbuild.
This is a high risk stock. I will use small position sizing and use in the money call options to reduce risk. Controlling the risk at entry and making sure the position is small is how catastrophic damage to accounts is prevented.
Already earning .41 for 2023 and expected to earn .49 in 2024, IQ has a forward earnings yield of over 14%. In addition to low Price to earnings, the growth potential expected is over 20% to as 38%.
Plotting out the growth to 2029 and using optimistic growth stock multiples, a stock like IQ could be worth between 47 and 94 dollars using PEG (price to earning growth) valuations of 1x growth and 2x growth.
That being said, thats the rosy optimistic case, there is also a very bad bear case that recognizes china is in a deflationary real estate down spiral and also surrounded by geopolitical risk. Some economists mention potential currency devaluation to factor the deflation issues in real estate overbuild.
This is a high risk stock. I will use small position sizing and use in the money call options to reduce risk. Controlling the risk at entry and making sure the position is small is how catastrophic damage to accounts is prevented.
Commentaire:
IQ long calls deep in the money have been working after positive earnings.