JD.com, Inc. - ADR (NASDAQ)
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Alibaba
Group and JD.com, Chinese e-commerce giants have lost over a third of their
market cap during the last two months. The recent renomination of Xi Jinping
for the third term as the Secretary General of the Communist Party of China and
his efforts to put his fellow comrades in to key positions of leadership, has hit the Chinese
stock market badly. The third ruling of comrade Xi is seen to be a bad sign for
Chinese market developments. Investors are panicking and many are selling off
their assets.
But the
good news is that nobody wants to rock the economic system of China. The Chinese
government is in close cooperation with the U.S. Administration in order to
avoid the delisting of Chinese corporation stocks from U.S. exchanges. Walmart
is the owner of 13% of JD.com stocks and is likely to put extra efforts into
stabilising its stock prices. One of the ways to exercise these efforts could
be a buy back of JD.com shares as the company has accumulated more than 35
billion yuan in Free Cash Flow (FCF) during the last twelve months. No U.S.
retail corporations are close to such a profitable performance. Nonetheless, the
shares of U.S. retail corporations cost more.
JD is
estimated to have Price to FCF Ratio above 13 for the Q3 2022. This is twice as
low as average U.S. peers. So, this may mean that JD stock prices may be up by
100%. This is not going to happen soon, as the recovery of share prices will
require some time. But in the long-term JD.com stocks are seen to be an
excellent addition to the investment portfolio.
JD.com, Inc. - ADR (NASDAQ)
Ticker | JD |
Contract value | 100 shares |
Maximum leverage | 1:5 |
Date | Short Swap (%) | Long Swap (%) | No data |
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Minimum transaction volume | 0.01 lot |
Maximum transaction volume | 100 lots |
Hedging margin | 50% |