Author Topic: SE - Sea Limited ADR  (Read 2221 times)

thepupil

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Re: SE - Sea Limited ADR
« Reply #10 on: May 15, 2020, 11:15:24 AM »
I don't want to muck up the Sea thread any more than I already have, but another strategy is to go long $100 of say the Prosus ADR in an IRA and then short $20-$100 of 700HK in your taxable (depending on your desired exposure). I've done this to be net long the company while using the general growth in value of the company to generate tax losses from a highly correlated (but importantly, not substantially identical) security.

Example:
Long $100 of PROSY in IRA
Short $40 of 700HK in taxable.

both stocks go up 30%, you have $30 gain in IRA (ideally a roth) and $12 loss in taxable and you're now $130 / $52, you can then collapse the trade and gain $30 in your tax advantaged, lose $12 in your taxable, then sell something else with $12 of gains in your taxable and re-buy it. the result is no taxable gains and a higher basis in the re-bought security.

in general being long something in your IRA and short highly correlated similar things in the taxable is a good way to generate losses in an up market. you obviously want to do it with actual investing in mind.
« Last Edit: May 15, 2020, 11:17:51 AM by thepupil »


valueinvestor

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Re: SE - Sea Limited ADR
« Reply #11 on: May 15, 2020, 11:53:23 AM »
I don't want to muck up the Sea thread any more than I already have, but another strategy is to go long $100 of say the Prosus ADR in an IRA and then short $20-$100 of 700HK in your taxable (depending on your desired exposure). I've done this to be net long the company while using the general growth in value of the company to generate tax losses from a highly correlated (but importantly, not substantially identical) security.

Example:
Long $100 of PROSY in IRA
Short $40 of 700HK in taxable.

both stocks go up 30%, you have $30 gain in IRA (ideally a roth) and $12 loss in taxable and you're now $130 / $52, you can then collapse the trade and gain $30 in your tax advantaged, lose $12 in your taxable, then sell something else with $12 of gains in your taxable and re-buy it. the result is no taxable gains and a higher basis in the re-bought security.

in general being long something in your IRA and short highly correlated similar things in the taxable is a good way to generate losses in an up market. you obviously want to do it with actual investing in mind.

Hey if your posts are like this - muck it up more.

henrysalt

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Re: SE - Sea Limited ADR
« Reply #12 on: May 16, 2020, 09:36:04 AM »
Earnings come out Monday morning before market opens. Any guesses?

valueinvestor

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Re: SE - Sea Limited ADR
« Reply #13 on: May 16, 2020, 01:07:44 PM »
Don’t have any - but do you have a guess?

The most I could venture is Sea Limited was not affected as bad as people think with COVID-19.

valueinvestor

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Re: SE - Sea Limited ADR
« Reply #14 on: May 18, 2020, 04:26:29 AM »
First Quarter 2020 Highlights

Total adjusted revenue was US$913.9 million, up 57.9% year-on-year from US$578.8 million for the first quarter of 2019.
Total gross profit was US$206.8 million, up 424.1% year-on-year from US$39.5 million for the first quarter of 2019.
Total adjusted EBITDA was US$(69.9) million compared to US$(32.0) million for the first quarter of 2019.

Digital Entertainment
Adjusted revenue was US$512.4 million, up 30.3% year-on-year from US$393.3 million for the first quarter of 2019.
Adjusted EBITDA was US$298.4 million, up 32.2% year-on-year from US$225.8 million for the first quarter of 2019.
Adjusted EBITDA margin increased to 58.2% for the first quarter of 2020 from 57.4% for the first quarter of 2019.
Quarterly active users (“QAUs”) reached 402.1 million, an increase of 48.0% year-on-year from 271.6 million for the first quarter of 2019.
Quarterly paying users grew by 72.5% year-on-year to 35.7 million, accounting for 8.9% of QAUs for the first quarter of 2020, increasing from 7.6% for the same period in 2019.
Average revenue per user was US$1.3 compared to US$1.4 for the first quarter of 2019.
Our self-developed global hit game, Free Fire, recently hit a new record high of over 80 million peak daily active users and, according to App Annie1, was the highest grossing mobile game in Latin America and in Southeast Asia in the first quarter of 2020. Free Fire was also ranked third globally by downloads for Google Play in the mobile games category in the first quarter of 2020, according to App Annie1.
In April 2020, Free Fire hit another record high in monthly paying users, which more than doubled year-on-year, and in India, monthly paying users already accounted for over 10% of monthly active users.
We continue to focus on esports and community building activities to engage with our rapidly expanding user base. In the first quarter of 2020, we organized more than double the number of esports tournaments online for Free Fire compared to the first quarter of 2019, with these tournaments accumulating over 90 million views.

E-commerce
Gross merchandise value (“GMV”) growth accelerated to 74.3% year-on-year to reach US$6.2 billion for the first quarter, compared to 64.8% year-on-year in the fourth quarter of 2019.
Gross orders totaled 429.8 million, an increase of 111.2% year-on-year from 203.5 million for the first quarter of 2019.
Gross orders growth further accelerated to more than 140% year-on-year in April 2020.
Adjusted revenue was US$314.0 million, up 110.5% year-on-year from US$149.2 million for the first quarter of 2019.
Adjusted revenue included US$236.7 million of marketplace revenue2, up 132.1% year-on-year from US$102.0 million for the first quarter of 2019, and US$77.3 million of product revenue3, up 63.6% year-on-year from US$47.2 million for the first quarter of 2019.
Adjusted revenue as a percentage of total GMV increased to 5.1% in the first quarter of 2020, up from 4.2% for the same period a year ago. Adjusted marketplace revenue as a percentage of total GMV was 3.8 % in the first quarter of 2020.
Sales and marketing expenses were US$206.0 million, compared to US$147.9 million for the first quarter of 2019.
Adjusted EBITDA was US$(260.0) million compared to US$(235.3) million for the first quarter of 2019. Adjusted EBITDA loss per order decreased by 48.3% to US$0.60, compared to US$1.16 for the first quarter of 2019.
In Indonesia, where Shopee is the largest e-commerce platform by orders, it registered over 185 million orders for the market in the first quarter, or a daily average of over 2 million orders, an increase of 122.6% year-on-year. Shopee also ranked first in Indonesia by average monthly active users, downloads, and total time spent in app on Android, in the Shopping category in the first quarter of 2020, according to App Annie1.
Both in Southeast Asia and in Taiwan, Shopee ranked number one in the Shopping category by average monthly active users, and total time spent in app on Android, for first quarter of 2020, according to App Annie1.
Shopee also ranked number one in the Shopping category by downloads in Southeast Asia, and was among the top three worldwide by downloads in the same category for first quarter of 2020, according to App Annie1.

valueinvestor

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Re: SE - Sea Limited ADR
« Reply #15 on: May 23, 2020, 09:19:33 PM »
Sea Limited Prices Offering of US$1 Billion Convertible Notes

https://www.businesswire.com/news/home/20200520005381/en/%C2%A0Sea-Limited-Prices-Offering-US1-Billion-Convertible

Considering we’re in a recession and possible depression, I find this raise quite positive. Don’t think others can’t get terms like this at their size.