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XNET: A Tenbagger Unless IT Goes Private

|Includes: Xunlei Limited (XNET)

XNET will release 2015 Unaudited Fouth Quarter and Fiscal Year Earnings tomorrow. I have every reason to believe it will be an excellent report, given its recent initiatives. XNET is a tenbagger if you buy it now. My arguments are as follows:

First, Vaule. The company had cash, cash equivalents and short-term investments of US$446.7 million (as of Sep 30 2015), beyond the current market capital US$402.52 million.

Second, Growth. The growth in revenues from Project Crystal will be the main contributor. If you take a look at how Chinese people rush to buy the terminal hardware and turn their home idle banwidth into hard-workers for Project Crystal, and take a look at how Project Crystal had contributed in accelerating internet services for Xiaomi's ecosystem, you will understand why this project is going to be a blockbuster soon.

Third, Potential. The number of subscribers of its Internet Value-Added Services (IVAS) by Sep 30, 2015 was 4.94 million. XNET has potentials to turn the current subscribers into users of other services. For example, XNET has started a P2P lending platform recently, and one of its promotion is related to its IVAS subscriptions.

The closed price of XNET yesterday is 5.86. I believe the price will be rising when more details of Project Crystal are released in the coming earning report. If you are interested in XNET, please leave your message and I will write more about it.

Disclosure: I am/we are long XNET.