Free Issue No. 15 of 23.07.2020
All the lights are on growth for the Chinese technology company XIAOMI! And "growth" stocks have been out of favor over "value" stocks for years anyway. You can already hear predictions here and there that XIAOMI could well reach the size of Alibaba. Until its IPO in July 2018, the company made the majority of its revenue in the continent of Asia, with about 70% of that coming from its home market of China.The trade dispute between the U.S. and China is likely to be a secondary concern from this point of view.After all, around 2.6 billion people live in the key markets of India and China alone, which corresponds to around 35% of the world's population.In India, the company is already the market leader in smartphones... we can only hope that the current conflict between these two countries does not escalate.In addition, the cooperation with CK Hutchison Holdings is also very promising: the Hong Kong group Hutchison owns, among others. the Austrian mobile phone provider "Drei", the large Italian "Wind Tre" and a large retail chain; we see further very interesting sales channels here as part of the successful expansion.XIAOMI has thus also set high goals for itself outside of Asia, and so a lot is already happening in our latitudes. XIAOMI also refrains from spending a lot of money on advertising and relies primarily on word-of-mouth propaganda due to the good product and service quality.
We first recommended the XIAOMI share at a price of EUR 1.45 on May 21. On July 13, an interim high of EUR 2.00 was already achieved! The "first engine" thus already provides a 38% book profit!The growth story is on track and our price target of EUR 3 could well be just an "intermediate stop"!
XIAOMI is listed on the XETRA in Frankfurt under the symbol 3CP, the security number is 42'399'032, last price approx. EUR 1.86.
