Categories: Momentum Trader Alert HotlinesStock Market News

Playing the ‘Big Mo’ in China

With most U.S. investors focused on the Trump rally, almost all of them have missed out on a strong stock market rally in China. With domestic Chinese A-shares up 8.32% this year, the Chinese stock market has returned about twice the gains of the S&P 500.

This week’s Momentum Trader Alert recommendation shifts our attention to a Chinese Internet play that popped up on our momentum screens as a top performer.

Headquartered in Beijing, China, Momo Inc. (MOMO) provides a mobile-based social networking platform in the Peoples Republic of China. Momo’s platform includes mobile applications and related features, functionalities, tools and services.

Momo also provides membership subscription and other services, which include paid emoticons and mobile marketing services. With the company closing in on 100 million users, Momo’s management expects earnings to grow as much as 377% year over year in 2017.

Momo Inc. (MOMO) versus the S&P 500 year to date.

Momentum Trader Alert Analysis

Recommendation

Buy Momo Inc. (MOMO) at market today and place your stop at $29.00.

I am holding off on recommending options on this position for now.

Portfolio Update

With the S&P 500 closing at the same level it was on Feb. 14, momentum in the overall U.S. stock market has faded in the past two months.

Still, stock-specific news can overcome the overall state of lethargy, as you saw with the 8.38% jump in Healthcare Services Group (HCSG) this past week. The Bensalem, Pennsylvania-based company announced profits of 30 cents per share, beating consensus estimates by a penny.

Sincerely,

Nicholas A. Vardy

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Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.