Showing posts from September, 2018

Video gaming industry - bottom up analysis and product analysis

A foray into video gaming industry As a past fervent gamer, I was particular interested in exploring gaming companies. Blizzard, Nintendo, Square Enix, Nexon, Electronic Arts are some of the prominent companies I have looked through on a deliberate basis. Due to my value investing approach, I was never able to find gaming companies with reasonable valuations from its PE, P/CF and free cash flow perspective. I have previously tried to research on Nexon after the release of Maple M and I find the CEO's narrative extremely compelling, as certain games exhibit the branding / franchise model often touted by Warren Buffet .Nonetheless, I lack the accounting understanding in invest in Japan equities, and the moat / stickiness of Nexon gaming franchise model. Personally, I find this video one of the most fundamentally rooted analysis of the gaming industry, and I will revisit the lessons I learnt from this CEO in this post.   How to avoid being the dumb money 1) Innovatio

Bear Hunting in Hong Kong

Bear Hunting in Hong Kong Hong Kong market and China /Hong Kong tech sector has recently reached bear territory. As a fervent bear hunter, this presents an unparalleled opportunity for potential entry into a foreign market that I am reasonably familiar in, as well as an industry that has great growth potential. The companies that constitute Hong Kong market consist of prominent companies (Tencent, HSBC HK, Bank of China, CK Hutchinson) as well as interesting ones (Alibaba pictures, Want Want). Hong Kong was recently having a economic boom prior to the emergence of the bear. There was recent IPO of various companies like Xiaomi, a company focused on innovation in assorted areas, from rice-cookers to smartphones and Internet of Things. There were many more smaller companies that were busily raising cash from would-be investors, and not even bothering to fine tune administrative details such as registration for official ISIN. There was also a fervent increase in housi