Whitney Tilson’s email to investors discussing the Stansberry conference; Alibaba Group Holding Ltd (NYSE:BABA) stock pitch.
Q3 2021 hedge fund letters, conferences and more
The 2021 Stansberry Conference & Alliance Meeting
1) The 2021 Stansberry Conference & Alliance Meeting in Las Vegas wrapped up yesterday, and I'm flying home this afternoon.
It was a great event: There were many interesting speakers and stock ideas, plus it was fun catching up with old friends and meeting dozens of Empire Financial Research subscribers, whom I gave signed copies of my book, The Art of Playing Defense, as you can see in this picture.
Alibaba Stock Pitch
2) The most intriguing stock idea I heard of was Chinese tech giant Alibaba (BABA), which was pitched by Brett Eversole, the senior analyst for my friend Steve Sjuggerud, who just celebrated the 20th anniversary of his True Wealth newsletter at Stansberry Research.
I've never invested in China because I consider it outside of my circle of competence, but Steve knows the country and its markets well. In fact, here's a picture of us at the Great Wall of China with a few dozen of our subscribers who joined us at the Stansberry Spring Summit in Beijing in May 2019 (Steve is in the back center, and I'm in the back a little to the left, highlighted by the red arrows).
The government's crackdown has cut many Chinese tech stocks in half. But Steve argued that the selloff is overdone and recommended two ways to profit from this: First, buy a basket of stocks in the sector via the KraneShares CSI China Internet Fund (KWEB) and/or shares of Alibaba (BABA).
He presented a slide like this one, showing that Alibaba's stock is currently trading close to its lowest level ever on both enterprise-value-to-sales and price-to-earnings multiples:
Best regards,
Whitney
