The Call on China Telecom

Published on
September 20th, 2018
Topic
Technology, Technical Analysis, Trading
Duration
9 minutes
Asset class
Equities

The Call on China Telecom

Technical Trader ·
Featuring Louis Llanes

Published on: September 20th, 2018 • Duration: 9 minutes • Asset Class: Equities • Topic: Technology, Technical Analysis, Trading

Louis Llanes, founder of Wealthnet Investments, unpacks the case for upside in China Telecom shares. In his view, the company's cash flow and strong subscriber base create a unique competitive advantage that will allow the company to outrun the competition in the race to build 4G and 5G infrastructure in the world's most populous nation. Filmed on September 18, 2018 in Englewood, Colorado.

Comments

  • FT
    Freddy T.
    1 October 2018 @ 11:43
    how to comprehend the fact that party committee is playing a major governing role in these HK listed 123 middle kingdom companies. this is a fact and have been written on the article of associations of these companies. and these party committee have power over the board of directors.
    • LL
      Louis L. | Contributor
      1 October 2018 @ 22:13
      There’s risk there
  • CT
    Christopher T.
    25 September 2018 @ 03:07
    Louis is one of my favorites on RV
    • LL
      Louis L. | Contributor
      1 October 2018 @ 22:13
      Thank you!
  • LW
    Lorenz W.
    22 September 2018 @ 08:49
    I am living in Shanghai and thought this trade is based around the thesis that the CN gov is considering to merge China Unicom with China Telecom. Is this possibility considered as well?
    • LL
      Louis L. | Contributor
      22 September 2018 @ 18:44
      This is a possibility for sure. That could be bullish.
  • my
    markettaker y.
    22 September 2018 @ 01:49
    Would probably pay to see Louis walk through his charting setup and how he breaks out a trade and puts together all the TA signals. Not a trading course, but more like 'TA for investors'. Just knowing when to enter a position, how, when to get out and wait for better prices, etc... all has a big impact on returns even for fundamental buy-and-holders who have conviction in a sector or looking at beaten up deep value plays.
    • LL
      Louis L. | Contributor
      22 September 2018 @ 18:46
      I will keep that in mind. Watch for another video we filmed about Fact versus Fiction with trading new highs versus beaten down stocks.
  • HO
    H2 O.
    20 September 2018 @ 14:42
    Govt is telling them to cut prices. The cash cow is on a diet. They can't afford 5G on their own and need to raise capital. Shares in thinning cows will be diluted.
    • LL
      Louis L. | Contributor
      20 September 2018 @ 21:02
      Thanks for you input. I think the pricing pressures are temporary. Longer term play here. What you are saying is priced into the company...baked in the cake if you will. It's anticipating change that makes above average gains. If I'm wrong on that, the position will get stopped out. Take small position size, big return, bigger risk.
  • MW
    Myron W.
    20 September 2018 @ 14:28
    I’m not taking this trade as I don’t have the stomach for it. But I think Louis did a great job presenting his case and explaining it. Hope to see more from Louis in the future, including some follow up evaluation of this trade in a year.
    • LL
      Louis L. | Contributor
      20 September 2018 @ 21:04
      Yes, not for the faint-of-heart. Big potential return, but higher risk. Taking small position size and being patient. Will stop out if moves against me.