Long/short equity, growth, contrarian

Cheetah Mobile: Will The Real Clean Master Please Stand Up?

In conjunction with my initiation on Cheetah Mobile (NYSE:CMCM) (Please see my note: Cheetah Mobile: This Cat Has A Long Way To Go; Initiating With $16 Target, 24% Downside), I conducted a deep analysis on the mobile cleaner market.

My conclusion is that despite having over 223m mobile MAUs (of which 140m belongs to the "Clean Master"), CMCM does not have a meaningful competitive advantage in the mobile cleaner space due to the lack of technological sophistication behind the product. As such, I do not see CMCM has the ability, the financial resource and the brand advantage to compete against Qihoo (NYSE:QIHU), Baidu (NASDAQ:BIDU) and Tencent in China. As for the international market,...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details