Thread by @saxena_puru

$BABA

Dominant ecommerce, cloud, digital payments/fintech, advertising/media business growing like a weed and trading at PEG ratio of 1

Here are some facts -

A. Strong absolute and relative revenue + profits growth (see attached) -

B. Massive e commerce business - roughly 780 million mobile MAUs and almost 700 million annual active users across Taobao and Tmall

C. 33% stake in Ant Financial - Alipay, credit services, money market funds etc (see attached)

D. An entire portfolio of strategic investments and acquisitions worth tens of billions (see attached)

E. Alibaba cloud - dominant/fast growing (>60% revenue growth) cloud business (see attached)

F. Lazada - exposure to South East Asia's e commerce market (see attached)

G. Media/advertising business

H. Nascent retail business - Hema/Freshippo supermarkets etc

I. Management - A few years ago, a renowned short seller accused $BABA of accounting fraud but when the company invited him to visit its headquarters to better understand their business; he refused to go.

Leadership is vital so attached is a list of the Board of Directors-

The details of the senior management team are also attached.

What are the odds that all these qualified and highly experienced professionals from different fields are all colluding and engaging in accounting fraud?

Notable that $BABA CFO was previously audit partner at KPMG.

So, here we have a really dominant, rapidly growing business (analysts are expecting its revenue to more than triple in 5 years - see attached).

Yet this business is now being valued at 26 times 2019 earnings (or around 1 PEG)

$BABA is my biggest position.

If $BABA meets analysts' estimates (its forward 5-Yr EPS CAGR is around 26%) and its valuation multiple remains unchanged (25 P/E); shareholders may end up with 5-Yr compounded return of 25%!

Not a prediction; just basic maths.