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SpyderCall joined discussion · Oct 14, 2023 15:48

This is Starting to Look Interesting

I don't particularly follow this company with a passion and this is a chinese company. So I don't know the particulars of the delivery/transportation industry in that country. But the technical picture for Didi is finally starting to look up.
In the chart below, I have highlighted the long-term double bottom, followed by higher high, then a potential higher low. Aside from the long-term downtrend, so far the technicals are showing a somewhat bullish picture.
I should mention that it is typical to see a big selloff of an IPO that has had a lot of media attention. Hence the long-term downtrwnd. This is why I often warn people of investing in companies immediately after they go public. I like to wait for any kind of trend to develope before I make any investment decisions.
This is Starting to Look Interesting
The fact that this companies shares were delisted from the Nasdaq worries me a bit. But it does not mean that the sock will perform poorly. Here is an example with another solid chinese company that was delisted in the past. The shares of Luckin Coffee have experienced tremendous upside following a sharp selloff after their shares were delisted.
This is Starting to Look Interesting
Didi takes in a ton of revenue every quarter and they do not hold a lot of debt. But the company seems to be struggling to produce a positive operating profit every quarter. If this is due to the high cost of growing the company, then this might not be a bad thing.
It took Uber several years before they posted their first profitable quarter. I know these companies are in completely different countries but this is just an example of what could happen. Consecutive profitable quarters could be right around the corner.
Would you invest in this company?
As always, I am not a financial professional, and this is not investment advice. Be careful and be patient. Dont anticipate the market. Rather, participate in the market. Give your investments time. Don't be greedy. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. Do your own due diligence. And just follow the trends. A trend is your friend. Good luck trading.
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SpyderCall
Trade the trends via technical, fundamental, and macro analysis. Day Trades, swing trades, and long-term investments.
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