Author Topic: SE - Sea Limited ADR  (Read 17882 times)

villainx

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Re: SE - Sea Limited ADR
« Reply #50 on: December 10, 2020, 01:01:51 PM »
you forgot eternal regret.

+1.

Yea, agree on the above. Grossly expensive but in the sweet spot in an area I love the outlook of and rather than be another dork with a calculator griping about the euphoria, I'll take a small flyer here, ~$170, and if were get a 50% drawdown I'll play ball. Wouldn't be the first time. If it keeps ripping, I like that too. These are the types of companies you either have to buy at horrible valuations or come to terms with never owning.


valueinvestor

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Re: SE - Sea Limited ADR
« Reply #51 on: December 13, 2020, 05:19:58 PM »
2.6B unencumberedwith for 2% dilution is pretty good. Especially considering the digital bank licence.





valueinvestor

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Re: SE - Sea Limited ADR
« Reply #55 on: January 21, 2021, 12:05:08 PM »
Thought it would be prudent to add. I hold a considerable allocation towards SE and haven't sold a share. Although I saw some are trying to build a full position, and if I was them, I would not be inclined to build a large position at these prices with certain caveats.

The key risk is that SE is literally purchasing revenues and the digital bank is going to most likely swallow more cash flow. Optically they are cash-flow negative, but cash-flow positive due to Free Fire and breaking-even of Shopee. They are heavily reliant on Free Fire to catch fire for eons to come to fund these investments. Multiple spinning plates and a lot of execution risk. With the digital bank - they may be back to being cash-flow negative and rely on share issuance.

The reason why I haven't sold a share is that if SE goes down 50%, I'm still sitting on a 100%+ gain. Secondly, I always have more capital coming in and I'm young. That's the caveat - if SE goes down 50% - it's just a case for me to purchase more of the digital back-bone of South East Asia at a discounted rate.

Nothing negative at the moment, but with every business that obsessive with the customer experience and long-term, things can go very badly in the short-term and translate to really bad drawdowns.

This is a 10+ year investment for me.

villainx

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Re: SE - Sea Limited ADR
« Reply #56 on: January 21, 2021, 06:57:19 PM »
Thought it would be prudent to add. I hold a considerable allocation towards SE and haven't sold a share. Although I saw some are trying to build a full position, and if I was them, I would not be inclined to build a large position at these prices with certain caveats.

The key risk is that SE is literally purchasing revenues and the digital bank is going to most likely swallow more cash flow. Optically they are cash-flow negative, but cash-flow positive due to Free Fire and breaking-even of Shopee. They are heavily reliant on Free Fire to catch fire for eons to come to fund these investments. Multiple spinning plates and a lot of execution risk. With the digital bank - they may be back to being cash-flow negative and rely on share issuance.

The reason why I haven't sold a share is that if SE goes down 50%, I'm still sitting on a 100%+ gain. Secondly, I always have more capital coming in and I'm young. That's the caveat - if SE goes down 50% - it's just a case for me to purchase more of the digital back-bone of South East Asia at a discounted rate.

Nothing negative at the moment, but with every business that obsessive with the customer experience and long-term, things can go very badly in the short-term and translate to really bad drawdowns.

This is a 10+ year investment for me.


Interesting and thanks!

valueinvestor

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Re: SE - Sea Limited ADR
« Reply #57 on: January 22, 2021, 08:17:18 AM »
My pleasure!  ;D

Simba

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Re: SE - Sea Limited ADR
« Reply #58 on: January 22, 2021, 07:20:06 PM »
Arg. Total regret selling.

valueinvestor

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Re: SE - Sea Limited ADR
« Reply #59 on: January 23, 2021, 01:18:46 PM »
Maybe it's the right time - you never know.