Nikada
Prosus N.V. (OTCPK:PROSY), the Amsterdam-based investment firm and top shareholder of China’s Tencent Holdings Ltd. (OTCPK:TCEHY), trades at a steep discount to its net asset value. And the company has a good plan to narrow the gap.
A
Prosus: Best Proxy To Internet Giant Tencent
Summary
- Prosus offers a low-risk entry to China's internet growth via Tencent, trading at a near 40% discount to NAV.
- An ongoing buyback program is funded with proceeds from selling Tencent shares. It shall continue to boost NAV per share for Prosus investors.
- I initiate the stock with a buy rating based on a narrower NAV gap and potential upside in Tencent.
- Key risks include potential strategy shifts and future investment errors.
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of PROSUS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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