Weibo (WB), mcap=$5.5bn, price $22.91 vs $20.80

– Chinese version of $TWTR.
– High growth business with 35% FCF margins.
– Low valuation of 4xEBIT more than accounts for a lot of negatives/sentiment.
– Unique asset at <1/10th of TWTR’s EV.
– Sold off in line with the rest of the Chinese internet stocks.
– Owned 45% by Sina and 30% by BABA.
– Newly announced buyback program for almost half of the float.

Valuation: Trades below 4x EV/EBIT and FCF. At 10x FCF + cash stock would be double.

Exp. gain: +100% to $42/share in two years.

Full WB write-up (free guest account required):

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