The ASR Company Forecast | Pinduoduo Inc.

A company’s report that attracts a beeline of speculators is no mere whipped cream off the tip of the iceberg.

by Alexander Solomon

Pinduoduo Inc. is the largest agriculture-focused technology platform in China, serving 731 million active buyers as of September 2020. It has created a platform that connects farmers and distributors with consumers directly through its interactive shopping experience. [cite: wikipedia]

Pinduoduo made its debut on the NASDAQ Stock Exchange on 26 July, 2018 and is seen as a major rival to Alibaba, according to Fung Business Intelligence report ‘Uncovering the emerging players in China’s e-commerce – Issue 3’ published in September 2018.

The report added, Pinduoduo – a popular group-buying platform which targets consumers in the lower-tier cities and rural markets. Customers can buy products at a cheaper price on Pinduoduo, while retailers can clear inventory on the platform.

Since Pinduoduo focuses on offering selected popular goods at a bargain price, through its team purchase model, it can generate substantial revenue within a short period of time. In other words, it can combat low margins through large number of team purchase orders.

Source: Google/PDD
source: Yahoo! Finance/quote/PDD

On 16 February 2021, the stock saw a remarkable jump in opening price at 211.60 from last 196.59 to a significant day’s volume of 8,326,800 from previous 2,759.300.

Amongst other fundamentals on the same trading day citing CNBC publish of article “Bitcoin surpasses $50,000 for first time as major companies jump into crypto ” that quoted Michael Saylor, CEO of enterprise software firm Microstrategy, “It (bitcoin) used to be dominated by leveraged retail traders … on international markets with a lot of leverage..”

“I think that starting in March of 2020, you saw institutions start to arrive, and I think in 2021 you’re going to see that trend continue,” Saylor added. “There’re enthusiasts for bitcoin as a medium of exchange, … but I personally believe that the compelling use case is a store of value.”

According to the article, there has been speculation that MicroStrategy offered a blueprint for Tesla’s bitcoin purchase after an exchange between Saylor and Elon Musk on Twitter about making “large transactions” with the cryptocurrency.

Other fronts during the same trading day on CNBC, Tiger Global doubled down on stake in Uber, added bets in Airbnb and DoorDash  and Fed’s Bullard: Bitcoin poses no threat to the dollar as world’s currency leader.

source: Google/PDD

Pinduoduo tock price rallied since the 18 November 2020 company announcements of Pinduoduo announces pricing of convertible notes and equity offerings, set to raise US$6.1 billion including over-allotment and Pinduoduo Announces Pricing of its Offering of US$1,750,000,000 Convertible Senior Notes due 2025 and its Upsized Offering of 28,700,000 American Depositary Shares

Any indicators to go by the general investment foray, Aberdeen Standard Investments news article “ASI Strengthens Smaller Companies Teams With New Hires” published on 17 November 2020 quoted two key appointments to its Smaller Companies Team to help drive growth and support the team’s strong track record across UK, European and Global strategies.

1 among the 2 new Investment Analysts, Tzoulianna joined ASI in 2018 as a graduate. Her main responsibilities will be working with the team on all ESG-related research and engagement as well as stock research in Southern European small-caps and mid-caps.

Alexander Solomon LLP is of the opinion post Asian Currency Crisis 1997 which saw what according to Wikipedia was a “public revenue and exports collapse through to 1999, that in August and September 1999, when the economy further suffered from a temporary Russian ban on exports of oil and oil products”, the majority of investors report were jittered by enabling factors, not by stop-gap measures from industrial climate pressure or economic peer-driven companies.

Disclaimer: This is not a paid or sponsored article. The sources and information quoted are to correct time of reference. Opinions herewith are not intended to market make or manipulate trading interests of any parties. Readers may/may not forecast trading decisions from these findings. The writer bears no responsibility to market adjustments due from publish of this report.  


Alexander Solomon is an independent industry commentator and the author of adventure novels ‘Aces High @ 23 Wall Street’ and ‘F-A-M-E ‘ze Great’. He has worked in Singapore Police Force, Singapore International Monetary Exchange, Singapore Exchange, Mediacorp and Philip Capital.


Published by alexandersolomon

Alexander Solomon LLP Singapore ACRA T15LL1711H l l

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