$SE - About to Say SE(E) You Later (discussion)

[gcam]

*Hope I caught your attention. But first things. First.

A.) I have zero fucking clue what I’m doing so take all this with a grain of salt and please please look over everything and challenge/ ask questions

B.) I currently do not have a position

tl;dr: SE reports earnings BMO on 11/16 and I think there’s potential for some nice gains (finally playing calls)

SE: Sea Limited is a leading global consumer internet company founded in Singapore. Its mission as a company is to better the lives of consumers and small businesses with the help of technology. For now, it operates through three core businesses across digital entertainment, e-commerce, as well as digital payments, and financial services. Impressively, SE stock has risen more than 75% since the start of the year.

Garena is the company’s gaming segment that provides global users access to popular and engaging games. Through its platform, gamers can socialize and build communities to have a better time. For those unfamiliar, Garena is the developer of Free Fire, a popular mobile battle royale game. This is the most downloaded mobile game globally in 2019 and 2020. And it is the profitable gaming division that played a role in helping to fund the growth of Sea’s e-commerce arm.

Financially, Sea has also been trending in the right direction. For its second quarter, its GAAP revenue was $2.3 billion, an increase of 158.6% year-over-year. Meanwhile, it posted a gross profit of $930.9 million, representing an increase of a staggering 363.5% year-over-year. So, would you consider buying SE stock ahead of its third-quarter earnings report on November 16?

Lets chat some more via charts:

What are analyst saying (today 11/11 we closed at $333)

Again. First timer here. Don’t come yelling or dropping the “I told ya so”

Let me know what ya’ll think - give me feedback. I’m trying to get better

[StonksMcGee]

I’m pretty new to DD as well. Did some digging around.

First of all, its looking weak in recent days went from a high of 372.7 on 10/19 all the way to were it sits at 334.

I want to know why that is.
Mainly, because of what’s going on with China’s inflationary worries, its been hitting most Chinese and Asian markets pretty hard.
-Cathie Woods also sold some of her position on 10/26, 10/28 (Probably doesn’t even matter)
I see that it has a negative EBITDA, but if they are able to reverse that in this newest earnings and beat revenue expectations that would be good for the bull case.

	As of Date: 11/5/2021Current	6/30/2021	3/31/2021	12/31/2020	9/30/2020
Market Cap (intraday) 5	197.55B	146.82B	115.99B	101.90B	75.42B
Enterprise Value 3	193.64B	142.77B	111.79B	100.50B	74.29B
Trailing P/E	N/A	N/A	N/A	N/A	N/A
Forward P/E 1	N/A	N/A	N/A	N/A	N/A
PEG Ratio (5 yr expected) 1	N/A	N/A	N/A	N/A	N/A
Price/Sales (ttm)	26.46	24.83	24.35	26.01	23.86
Price/Book (mrq)	55.49	43.14	34.29	137.47	88.33
Enterprise Value/Revenue 3	28.38	62.60	63.38	64.15	61.29
Enterprise Value/EBITDA 7	-155.81	-424.40	-324.28	-255.21	-222.19
Sea Limited (SE) Valuation Measures & Financial Statistics

[gcam]

I really appreciate the input here. I’ve been watching the movement myself (the analyst guidance with $333 as the low is a nice feeling). I’m going to continue to do some more research

[shakedown86]

Hi all! Great DD. I’ve been in SE for a long time, and actively eyeing my next big purchase.

SE has massive swings. If you zoom out on the 1 year it’s a very strong stock, going to 400 soon- the blood bath the other day of had it break down out of channel, that said I’m still watching and ready to pull the trigger with a little more validation upward

[khalidad]

SE holder as well. I was watching carefully this week to see what would happen on that pullback into what looks like a fib level: .5 Fib retracement from the ATH earlier this year. Looks like this acted as a natural support/demand zone matching up with the touches from March and May, and there was a reversal out of it. It looks like a bit of consolidation off the bounce, so I would be thinking about going for a 2 month swing with a target up to about 255-260.

[khalidad]

I should have added an update 2 weeks ago, but wanted to call out this week’s noteworthy activity. After a pullback last week and indecision candle Friday, there has been some good momentum this week. One of the ARK funds has also acquired quite a few shares the last 2 days as well. While Cathie’s team isn’t known for good timing on their buys, I think this is probably a good spot. The market has turned backwards a bit due to the CPI numbers, but as SE has upcoming earnings next month, so there is still a swing opportunity on shares. If you think the market is going lower before SE’s earnings, sell a cash-secured put to get assigned shares for a better cost basis.