Time for some good old fashioned DD!
HUYA is the ultimate buy of 2025, let me tell you why.
First off, China stocks are soaring, nearly every major institution is going long China. HUYA is best of class, owned by Tencent, the management team is all Tencent, one of the best operators in China and here’s the kicker .. HUYA has NO DEBT and $900 Million in cash, current market cap 750M .. YES, you read that correct they are trading for less than their CASH balance. It makes NO sense, and I believe it will be corrected quickly.
HUYA just announced MAJOR news - they are retuning 50% of their market cap back to investors in COLD HARD CASH. HUYA is paying a $1.47 cent dividend in July. That is a 41% dividend yield ! The stock is currently $3.25 per share. Buying now will give you a cost avg around $1.80 for a Tencent Backed growing company. Very few times in life will you find a 40% yield on your cash, this is one of them.
More news, they are buying back $100M worth of stock. They bought $1M worth of their own shares in ONE DAY and The CEO made an announcement, “we feel the stock price does not accurately reflect the business or future of the company.” For those that follow China stocks, BABA made an almost identical statement around $72 per share, now look at BABA (up 100% from that announcement)
Next; PATTERNS …. Last year HUYA announced a large dividend of $1.07 - over the following month the stock climbed the entire amount of the dividend plus much more. People, institutions, etc will pour into this company to lock in that massive 40% divided. I expect the stock to climb at least the amount of dividend plus some before July.
For every 10,000 shares of HUYA you own, you are making $14,700 in cash payment just this year. In my opinion this stock should return to $6.50 before dividend - meaning 100% gains, plus 40% dividend yield.
HUYA is the best stock in the market at this moment.
Position: LONG 41,000 shares, with plans to buy much more on any dip.
