Stock prices alone dont tell the entire story. stock prices just represent the equity portion of ownership. Debt holders are also a form of owners who can collect at liquidation before shareholders in the worst case scenario. The opposite of debt liabilities is excess cash on the balance sheet.
While debt would make a balance sheet look worse, cash does the opposite.
JD has excess cash on the balance sheet. 33b in cash vs 9.57b in debt. The extra cash makes the stock price even cheaper than it looks.
JD isnt the only one. There are other Chinese stocks with attractive balance sheets and beaten up prices. The current slowdown and sell off has crushed most of Chinese stocks. There is real geopolitical and economic risk right now in china. But the lesson here is learning to read the financials and using this information in decision making.
When looking at stocks, dont ignore the balance sheet. You will find hidden treasure sometimes, and other times you may find rot to avoid.
It looks like the turnaround is imminent but I think price can breach $20 before it does. JD macro elliot wave count is WXY and expecting a 3 wave structure coming down below $20 to be observed on the hourly or 4h. Probably back to $46 in 2024. Not nearly as good as NIO.
LetsBeMillionaire
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any suggestion where is JD heading now? i see lots of weakness since last 3-4 days. totally feel its undervalued
Jerseyboy79
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@LetsBeMillionaire if you look back to 2016 we're sitting at a multi-year low right now. I feel there's excellent support right here! I feel if you're going to buy now's the time to do it
LetsBeMillionaire
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already a bagholder from 28...incan avg now but scared
optionfarmers
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do you look at net cash positions for your favorite stocks? thoughts?