Editor's note: This is a guest post from Daniel Tyler, a BEST Inc investor, and does not represent the views of CnTechPost.
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I like $BEST!
So I already know I'm going to make the Chinese stock shorts and bears mad by posting this; but personally, I don't really care, because I like the company $BEST Inc!
I like the stock and think more people deserve to know about this undervalued gem.
Moreover, I'm not prejudiced, and I don't judge a company based on race or nationality or whatever -- to me, that's fundamentally wrong.
$BEST Inc is definitely under the radar. This tech company which combines logistics, SaaS (software as a service), smart supply chain, trucking, air freight and warehouse services, is in my opinion a sleeping giant.
First off, $BEST Inc's revenue is huge.
To give some comparison to this, the EV company NIO recently released their financial report in which stated NIO generated around $1.3 billion in revenue -- this for a tech company with a market cap of around 70 billion.
In comparison, $BEST Inc in Q1 generated around $1 billion in revenue; while $BEST's market cap is around 400 million.
NIO's P/S is 22.2 according to tradingview; whereas $BEST Inc's P/S is 0.1 -- I'm not denigrating NIO here; just highlighting $BEST is significantly undervalued based on this metric.
$BEST Inc is also getting closer to $BABA (Alibaba): $BEST has partnered with Cainiao, $BABA's logistics company, for "full-chain, direct logistics" expansion into "Thailand, Vietnam and Cambodia", which adds to their existing partnership which expanded into Malaysia and Singapore. Here's the link for this since I quoted it.
This is a big deal; and it is relevant when it's projected that China's logistics industry will be generating revenue in the trillions and trillions of USD by 2025 (See here).
$BEST Inc is growing too and narrowing loss/costs: in their first quarter in 2021, their parcel service Increased 33.6% year on year; their freight volume Increased by 81% year on year; and, their cost per ton decreased by 20.6%, as well as the price per ton decreasing by 5.4%.
$BEST Inc's warehouse orders Increased by 20.6% year on year; and their international Southeast Asia parcel volume Increased by 249% year on year (See here in Chinese).
There are also big institutions in $BEST Inc, which now is around 36.9%. BlackRock 4.8 million shares; Goldman Sachs 12 million shares; Alibaba group 10 million shares; Wells Fargo 9 million shares; Morgan Stanley 7.5 million shares; Vanguard 5.8 million shares, etc., (See here).
Hopefully, this serves as a concise primer as to why I like $BEST Inc: extremely undervalued; big partnership; growing/expanding; and big institutional investors. I like the stock; and I suspect there are many others who do too.
I know there's also a lot of shorts against $BEST Inc: last I checked, there was about 56% short volume, so I think it's pretty obvious why the shorts don't want any discussion about $BEST; and why the shorts will try any attempt to shut down that discussion.
But, we like the stock; I think it's only a matter of time before $BEST Inc rockets back to their IPO price of around $11+ and eventually, surpasses this. I think $BEST Inc is easily one of the most undervalued stocks around.
Long and strong! Let's go $BESTgang!
