Daily Brief TMT/Internet: Tencent, Travelsky Technology Ltd H, SPDR S&P 500, Tata Consultancy Svcs, Marathon Digital Holdings and more

• A shares were down small on the week. Larger caps down more. H-shares down more after a hard Friday.
• Net SOUTHBOUND buying was +HK35.8bn after $21.4bn the week before. SOUTHBOUND has net bought every day since the end of Chinese New Year.
• The flavour of SOUTHBOUND buying has been high-div SOEs for months and months. That is starting to change slightly. Tencent was the top net buy this week.

• Travelsky Technology Ltd H (696 HK) share price has recovered by 25% since January 2024 sell off
• CNY travel data indicates a huge potential of revenue increase for Travelsky.
• At 18x PER, Travelsky has become a bargain in the travel sector that is clearly rebounding. 

• A review of the structure of the stock market makes us long-term bullish.
• Growth stocks, as proxied by the NASDAQ 100, are weakening but a rotating correction is evident as value stocks are taking up the leadership mantle.
• That said, the S&P 500 is short-term extended and can pull back at any time, with initial support at about 5000 and strong secondary support at about 4800.

• Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
• On the IPO front, Trial Holdings (5882 JP) ended up doing better than we expected, while Hong Kong finally got its first US$100m+ listing for the year.
• For placements, India was again at the forefront, this time with a not-so-pleasant results of Tata Consultancy Svcs (TCS IN). 

• Crypto mining requires high capital investment, faces volatile bitcoin prices, and will experience upcoming revenue cuts due to the halving on April 16th
• Experts believe the risks outweigh the potential for short-term success in crypto mining, making it unlikely to generate significant free cash flow in the long term
• Examples like MARA, which saw a significant increase in revenue at a small fraction of its market value, showcase the precarious nature of the industry

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.