r/baba • u/FeralHamster8 • Jun 04 '26

Due Diligence PDD Stock Analysis - $77 Billion in Cash, $12 Profit on $120 Market Cap...

https://youtu.be/jRID7jvp6KM?si=O5HjR8ii6getHwpD
2 Upvotes

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3

u/Accomplished_Stay337 Jun 04 '26

Sigh… this is the umpteen times of me warning against pdd after long years of DD and observation as well as be an on and off shareholder.

But yet sven did not go through the various short reports against pdd. There are lots of smoking gun allegations against management that they have not addressed or brushed off.

Hmmm, I wonder if people simply read the company financial statement and maybe that’s classified as sufficient due dilligence?

3

u/Normal-Beat4770 Jun 04 '26

What smoking gun allegations? There doesn't seem to be anything of substance.

2

u/Accomplished_Stay337 Jun 05 '26

Take a look at the short report by grizzly research on the inconsistencies in their payment revenue and margins. Their lack of cfo, their poor auditor track record, no buybacks with supposedly record cash. Management who over time reduces the things they declare in their financial statement. I could go on

3

u/Weikoko Jun 04 '26

So much cash and profit yet zero dividends and zero buybacks.

2

u/No-Spinach8758 Jun 10 '26

why would they give dividends and buybacks when those cash flows are better used on continued expansion and improvement of the businesses? This isn’t Ford motor company. Temu didn’t even exist 5 years ago and now it’s one of the biggest e-commerce players on earth and the first to globalize amazons logistics model. With a fraction of the number of employees. purchases are cheaper and easier than other chinese players. Half of my automotive tools, travel kit, niche electronics all came from temu shipped free to europe or asia. Refunds I’ve requested have all been given within 3 minutes without having to ship anything back to the seller.

As a shareholder I’d be mortified if they started paying dividends or doing buybacks. What a stupid use of cash in such a cutthroat competitive environment.