PDD Holdings (PDD-Q)

Our PAST TOP PICK with PDD is progressing well.  To remain disciplined, we recommend trailing up the stop (from $118) to $125 at this time.  

As revenues surged by over 130% in recently reported earnings, we reiterate PDD as a TOP PICK.  The discount retailer in the Chinese market is seeing good market gains and is prepared for the mid-season "618" shopping festival there.  It trades 20x earnings and supports a robust 47% ROE.  We recommend trailing up the stop (from $110) to $118 at this time, looking to achieve $206 -- upside potential of 35%.  Yield 0%

We reiterate this disruptive e-commerce platform as a TOP PICK.  It trades at 21x earnings and supports a robust 39% ROE.  We like that cash reserves are growing rapidly and the company continues to invest in technology enhancements.  We recommend trailing up the stop (from $100) to $110, looking to achieve $179 -- upside potential of 38%.  Yield 0% 

PDD is a Dublin based company that owns two disruptive sizeable Chinese consumer platforms.  Revenues grew over 90% last year, generating $9.4 billion.  Cash reserves are growing aggressively.  It trades at 24x earnings, 7x book, but can justify the valuation based on a 35% ROE.  We recommend setting a stop-loss at $100, looking to achieve $170 — upside potential over 40%.  Yield 0%