• Alex Laan

Weibo, a former growth darling.

Do you remember Weibo, (WB:US) the Chinese ADR which was one of top performing stocks in 2016 and 2017?

The stock popped up on my market screener due to a significant short float ratio

  • Short Float 51%

  • Future PEG 1.7

  • Forward PE 19

  • EPS growth next 5Y 25.6%

  • EPS growth past 5Y 61%.

  • ROE 37%

Volume has not picked up recently, albeit the stock held up well past days during the correction in various growth related names.

Stock is trading above it's down trending 200MA, I prefer up trends defined by the 200MA.

As the earnings number tells us, the high growth period remains behind us and the future estimates have come down past 12 months. Forward PEG ratio isn't that appealing either, nor is the strength of the internet sector.

So what is the trigger for a rally? Even a stock which looks outstanding in a spreadsheet or holds a significant short float needs a trigger, what this could be is yet to be seen.

WB:US daily

Good luck and do remember to do your own research!

Recent Posts

See All

Weekly market comments

Dear investor, This weekly write up is an excerpt of my road map for the week ahead, it's written for my own sake, but will share it for a change to see whether it generates some interest. There might