Geely Trying To Stay Between The Lines In A Turbulent Chinese Market

It has been something of a wild ride for Geely (OTCPK:GELYY) [0175.HK] shareholders since my last update. While the shares are up close to 20% since that last article (which was around the time of its 52-week low), the shares were up more than 60% before this recent 30% sell-off on ongoing concerns about the company’s volumes and margins.

I do still believe that Geely shares are undervalued, and I still believe that Geely is going to emerge from the Chinese auto mosh pit as one of the survivors and leaders of the local industry. I also believe, though, that 2019 is going to be a rocky year with considerable uncertainty over U.S.-China trade relations and their impact on Chinese consumer spending and sentiment. I’d really like to see better sales momentum in Geely’s newer offerings before getting more bullish, though timing entry points for this name has always been challenging, given its relatively controversial status (very wide spreads between high/low price targets and estimates for revenue, EBITDA, and free cash flow).

Read more here:
Geely Trying To Stay Between The Lines In A Turbulent Chinese Market