Tencent Holdings Ltd (TCEHY)

A Chinese regulator is looking into it, saying that the music is too restrictive for competition. As always in China, it's what the communist party wants. If they decide to go down on it, they will.

Baidu reported earnings recently and missed sending the stock down. He does not believe tech talk as having a real revenue story. As such, the valuation does not make too much sense to him. The trade issues with China have made all these companies cheap, so if you are a trader this could be a good way to go. He would prefer Tencent or Alibaba instead.

There are Visa and MasterCard in North America, and Alipay and another Tencent app in China. They are also heavily into games and audio. It grows over 20%, is domestic, and is down substantially from its highs. (Analysts’ price target is $55.67)

(A Top Pick Jun 29/18, Down 12%) He still owns it and really likes it. Longer term, China still has an absurd amount of future growth. You want to have an allocation in this space. It has been impacted by the trade war between China and the US, even though their business is really all Chinese domestic.

He doesn't follow the Chinese stocks much. The decline in this and Alibaba stem from ongoing trade tensions, blocked from growing by the U.S. So, once the trade war ends then Tencent will revive. You can buy this long-term.

(A Top Pick Jun 01/18, Down 23%) He sold out of his holding. A huge player in online gaming. They received approval to bring online another new digital game that could create quite a buzz. His 12 month price target is $56.

(A Top Pick May 24/18, Down 17%) He would like to get back into this name. Long term this looks solid. However, still have the cloudiness of the US-China trade talks. He would probably start to pick away at this name now. This is one of the largest internet companies in the world by revenue and by market cap. The advertising business should be very strong. Is an important name to own.

(A Top Pick Apr 23/18, Down 5%) He thinks there is lots of upside in it. China needs the trade deal more than the US does. Tencent is not exposed that much to the export side of things. It is still growing at 20% plus.

He is out of it waiting for a pullback. It is a little overbought. He likes the company but he would wait for it to go to $44. He likes their mobile gaming sector. Their messaging system has 1.1 billion users. One of the 4th or 5th largest internet companies in the world.

Last year was bad for EM, especially China. 95% of all revenue is in China, for China, so there wasn't that much damage from trade wars. It's still on sale. Good for EM growth exposure, double digit growth, good balance sheet. Yield is 0.27%. (Analysts’ price target is $59.00)

Great long-term company. One of the strongest internet companies in the world. Trading at 35 times on a forward basis. In China they do everything with WeChat. Gaming is a big revenue source. Regulators are putting a freeze on game approvals. That is probably it hasn't move as others lately. But still a great long-term hold.

(A Top Pick Jun 29/18, Down 12%) If you owned any Chinese stock during the trade war with the US money has flowed away. It is a platform and software based company, which he believes creates unique value. He will continue to hold it.

(A Top Pick Jun 01/18, Down 18%) It's come back since the December sell-off. The Chinese government lifted a moratorium they started in late-August and ended in early-December; that meant halting the introduction of new video games, because Chinese children were addicted to videogames.

When the Chinese market got cracked when all the Asian markets got cracked, he thought they put these on fire sale. As a parallel, it is an FB-Q type of situation. They sell apps, music and a pay-app. They have games. It went from the 50s to the 30. It is a unique situation. They are growing at 10-30% and they are big while growing quickly. He would add again here. It is an investment grade company. (Analysts’ price target is $52.33)

Has a 1.75% position. Has had a haircut. Price target of $46.07. Not cheap. Dividend yield is 4.6%. Interesting, because they have an oligopoly in internet and gaming. Tremendous leadership in the video ecosystem, they have the developers and the distribution network. And now it has Tencent Music. He'd buy into the bigger holding company.