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Any1 have this 1?

@ JDP & Patrick,

I have had a cr@p Monday morning so far on this Tuesday. u 2 are confusing me.

And the Price tag of  188437c for a company that hold 34% of "the group now generating the fourth most revenue of any Internet company worldwide only Amazon, Google and eBay are ahead of it",
is too much

I think a lot of people in SA, still think SA is the sea and not the pond

I know a lot of people can't justify the prices

Thus you both think NPN is to high?


I understand that if you buy NPN, u are actually only buying Tencent's value they hold at the NPN price.

http://www.biznews.com/global-investing/2015/04/07/good-news-for-naspers-tencent-discount-getting-harder-to-justify/

Good news for Naspers – Tencent discount “getting harder to justify”

The greatest private equity investment in history is looking even better this morning. When Naspers bought 46% of Hong Kong-based Tencent in 2001 (that’s since been diluted to 34%) it was part of a strategy akin to throwing mud at the wall and hoping some stuck. The Tencent investment has solidified into granite with the group now generating the fourth most revenue of any Internet company worldwide – only Amazon, Google and eBay are ahead of it. In this considered piece, Robyn Mak of Reuters Breakingviews argues that the discount at which Tencent trades to Facebook is unjustified. Thousands of South African shareholders in Naspers, who have watched the explosion of their investment in wonder, will be hoping Wall Street picks up on the theme. – AH 

By Robyn Mak

HONG KONG, April 7 (Reuters Breakingviews) – Tencent’s discount to Facebook is getting harder to justify. The Chinese social media giant brought in roughly the same amount of revenue as its U.S. counterpart last year and was more profitable. Yet it trades at a lower multiple of earnings. The valuation gap warrants a rethink.
Tencent Chairman & Chief Executive Officer Pony Ma attends a news conference announcing the company's results in Hong Kong March 18, 2015. Tencent Holdings Ltd , China's biggest social network and online entertainment firm, posted a 51 percent gain in fourth-quarter net income, missing estimates, as sharing and content costs took a bite out of healthy revenue growth. REUTERS/Bobby Yip 
Tencent Chairman & Chief Executive Officer Pony Ma attends a news conference announcing the company’s results in Hong Kong March 18, 2015. Tencent Holdings Ltd , China’s biggest social network and online entertainment firm, posted a 51 percent gain in fourth-quarter net income, missing estimates, as sharing and content costs took a bite out of healthy revenue growth. REUTERS/Bobby Yip
 
In China, where Facebook, Twitter, and YouTube are banned, Tencent dominates the country’s social media networks. The Hong Kong-listed company boasts over 1.4 billion monthly active users on its Facebook-like QQ and QZone platforms. Its popular chat app WeChat, which combines messaging, games and payments, now has 500 million users each month. Though many users probably have multiple accounts, they generated $12.7 billion in revenue for Tencent last year, slightly more than Facebook’s $12.5 billion.

The similarities between the two end here. While advertising accounted for 92 percent of Facebook’s revenue, gaming is Tencent’s primary source of income. Games like League of Legends and Candy Crush Saga generated 57 percent of the company’s revenue. Membership fees from QQ and Qzone brought in an additional $3 billion. The Chinese group’s 30 percent net margin is also healthier than Facebook’s 23 percent. As a result, Tencent’s earnings last year were a third higher than at Mark Zuckerberg’s company.

How social networks make money

Yet investors place a lower value on the Chinese group’s earnings. Its shares trade at 33 times forecast net profit for the next twelve months, according Eikon. Facebook shares are on 39 times. Concerns about future growth may help to explain the gap: Tencent may find it hard to expand far beyond China’s borders. By contrast, just 15 percent of Facebook’s monthly active users are in North America. That may explain why its earnings are expected to grow faster in the future.

Even so, the difference may be harder to justify as the two business models converge. Facebook announced on March 25 that it would open up its Messenger app to become a platform for other services – similar to WeChat. Meanwhile Tencent is experimenting with advertising on its chat app, which Barclays estimates could generate more than $3 billion in revenue by 2017. Tencent shares have risen by more than 30 percent this year, while Facebook’s are up less than 5 percent. Expect the gap to narrow further. – Reuters

NPSNY +1.80% 157.20
0700.HK    +0.20% 148.30
MAIL.IL    +2.75%

Most U.S. markets will be closed on Friday, with some European markets closed Friday through Monday and reopening on Tuesday. MSCI's broadest index of Asia-Pacific shares outside Japan was up about 0.5 percent, ignoring modest overnight losses on Wall Street. Australian shares (.AXJO) rose on growing expectations that the Reserve Bank of Australia will announce its second rate cut of 2015.

  Australia ASX All Ordinaries Australia +36.80 +0.63% 5,869.70 1:11am ET
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  Hang Seng Hong Kong +96.71 +0.39% 25,179.46 1:58am ET
  Mumbai Sensex India +302.65 +1.08% 28,260.14 Apr 1
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  Taiwan TSEC 50 Index Taiwan +92.66 +0.97% 9,600.32 1:33am ET

  FTSE 100 England +36.46 +0.54% 6,809.50 Apr 1
  Euronext 100 Europe +4.37 +0.44% 988.87 Apr 1
  CAC 40 France +28.58 +0.56% 5,062.22 Apr 1
  DAX Germany 0.00 0.00% 12,001.38 Apr 1
  Swiss Market Index Switzerland 0.00 0.00% 9,137.26 Apr 1

  Dow Jones Industrial Average United States -77.94 -0.44% 17,698.18 Apr 1
  S&P 500 INDEX United States -8.20 -0.40% 2,059.69 Apr 1
  Brazil Bovespa Stock Index Brazil +1,078.31 +2.10% 52,321.76 Apr 1
  Canada S&P/TSX 60 Canada +1.48 +0.17% 870.76 Apr 1
  Santiago Index IPSA Chile +54.80 +1.73% 3,215.07 Apr 1
  IPC Mexico +478.16 +1.09% 44,202.94 Apr 1

I just checked, In 2013 I bought DRD @ R5.70, then sold it later for R6.15. Imagine I kept it....... , now at R2.12, but I still do follow the commodities.

See u sold at R7.00, did you buy again? At what Price?

@griffin. In competition I am down at bottom, thus need to do something to kick MP @ss, real life, I am scared for resources.

Patrick, do the following.

Go to NPN website , check how many NPN shares there are, also on website they show how many Tencent shares they own. Do some calcs and let me know.

DEFINITION of 'Price/Earnings To Growth - PEG Ratio'

A stock's price-to-earnings ratio divided by the growth rate of its earnings for a specified time period. The price/earnings to growth (PEG) ratio is used to determine a stock's value while taking the company's earnings growth into account, and is considered to provide a more complete picture than the P/E ratio. While a high P/E ratio may make a stock look like a good buy, factoring in the company's growth rate to get the stock's PEG ratio can tell a different story. The lower the PEG ratio, the more the stock may be undervalued given its earnings performance. The calculation is as follows