3 Must Read Stories: Geely Proves Bears Wrong, Reliance's 4G Phone Giveaway, Philippines Property Stock Rally

Chinese auto maker Geely Automobile Holdings (175.HK) is not only taking on the giants of the auto industry, it's also taking on - and proving wrong - bearish analysts who say the stock is a sell.


Photographer: Tomohiro Ohsumi/Bloomberg

Bloomberg has a great story looking at the 500% surge in the stock and how it has left some analysts flat-footed. Here's a little taste:

It takes a strong stomach to be bearish on Geely Automobile Holdings Ltd.
Just ask Robin Zhu. The Hong Kong-based Sanford C. Bernstein & Co. analyst has advised investors to avoid Geely since August 2015, a span where the share price has soared more than 500 percent. The owner of Volvo cars is the world's best-performing auto stock this year and one of the most highly valued, trading at 26 times profit. Among more than 30 analysts tracked by Bloomberg, Janet Lewis at Macquarie Group Ltd. has the only other
Bulls say that billionaire Li Shufu, who controls Geely, will succeed in grabbing market share in China for his new upscale brand Lynk & Co., while using its investment in Malaysia's Proton Holdings Bhd. to expand in Southeast Asia. Still, Bernstein's Zhu isn't backing down: he reiterated a 12-month target price of HK$7.50 on Thursday, implying a 57 percent stock decline from Friday's close. That's the steepest downside for a forecast made by any other analysts within the past three months for a company on the Hang Seng Index. Geely didn't immediately respond to requests for comment.

Indian conglomerate Reliance Industries (500325.IN) is shaking up the country's mobile market with the roll out of its 4G Jio network, but getting people to use the network has been complicated by the expense of 4G phones. Reuters has a good story on how Reliance is now offering a low cost 4G phone to entice new subscribers :

Jio has enjoyed a meteoric rise since its launch a year ago, with its months of free services and sharply discounted plans battering the fortunes of incumbents such as Bharti Airtel and Idea Cellular, who have seen revenues and profits shrink dramatically.
Despite Jio's rapid rise, funded by mega-profits churned out by parent Reliance Industries' core refining and petrochemicals operations, it has been unable to tap more than 500 million non-smartphone users in India, who still rely on old feature phones to make calls and send text messages, as its network only supports 4G-enabled phones.
Reliance sees the new handset, named JioPhone, allowing it to target India's entire mobile market for the first time.

Philippines property stocks have been on fire recently and one fund manager reckons there's more upside. Bloomberghas the details :

The Philippine Stock Exchange Property Index has climbed 24 percent this year as investors became more sanguine about President Rodrigo Duterte's pivot to China and his U.S. counterpart's insular approach to trade, which could hurt outsourcing companies. The measure now commands the highest premium since 2013 over the stock benchmark, which is up 17 percent.
Driving demand for houses and office space is an accelerating economy, rising remittances from Filipinos abroad and government incentives to draw offshore businesses. Complimenting that is lawmakers' plan to lower some taxes and boost spending on roads and bridges, a move cheered by investors.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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