ANTYA Investments Inc.
Suite 1800 M4V1L5 Toronto, ON, Canada

If short interest in Tesla is a leading indicator, we are interested in making friends with those brave souls that would be willing to bet on NIO Inc. Will NIO divert attention from Tesla, or will Tesla's China opportunity suddenly be valued appropriately by the market remains to be seen.

Meituan Dianping has built an enviable position in China but is now under attack from all directions. Well funded opponents including Alibaba, Didi, and JD.Com are either fortifying their position or have already bulked up for a debilitating battle. It is unlikely that anyone will take a bow soon and hence IPO investors should take a conservative position while subscribing to shares on offer.

The whole going private episode is an unnecessary distraction for long-term shareholders. However, it establishes a very important floor under the stock price, because those currently short, suddenly need to contend with the possibility, however remote, that Tesla could go private at a higher valuation, crystallizing immediate losses for the shorts. At this point we believe $500/share would be a fair price.

If true the final bid will settle around $500/share.

Meituan Dianping (MEITUAN CH) is coming to the market at a difficult time. A slowing Chinese economy, a weaker currency and the threat of an all-out trade war could dampen investor sentiment. In ANTYA’s view, US$ 6.25/share, or thereabouts, is a fair price for IPO investors to pay. That level provides a margin of safety and includes room for capital appreciation.

Tesla is headed higher.

News headlines, President Trump’s tweets, rhetoric from China’s bureaucracy, and jittery investors have contributed to NXP Semiconductors NV (NXPI US) trading at a 20% discount to the price proposed by Qualcomm to acquire the company. We believe investors should ignore the noise and take the plunge. There is a very high degree of probability that NXPI will provide sufficient risk-adjusted return in short order for the few brave souls who stick around till the end. With the U.S. lawmakers removing anti-ZTE measures from the defense bill, one of the last hurdles in the way of a successful culmination of the deal is out of the way.

In our opinion, Xiaomi Corp's (1810 HK) current valuation is disconnected from its fundamentals. Given regulatory setbacks in China, and a deluge of vested RSUs about to hit the bourses, we believe a wait and watch approach will serve investors that are on the sidelines very well.

According to various media reports, Xiaomi Corp (1810 HK) has successfully priced its IPO for HK$ 17/share, at the low-end of its proposed pricing range. We believe that there is 50% downside from the current levels, over the next twelve months, unless Xiaomi can come up with a miracle cure for "something"

For bulls like us Tesla Motors Inc.'s (TSLA US) announcement of meeting production goals is good news. Bears need to find a way out of the mess they find themselves in. Tesla has a market capitalisation of only $60 billion or thereabouts. Facebook, Amazon, Apple, Microsoft, Netflix , Alphabet, Alibaba, Tencent are all worth a lot more. Tesla will be a worthy addition to that walk of fame in a couple of years.

We believe Baidu Inc (ADR) (BIDU US) has taken multiple steps to de-risk its business by divesting the financial services segment, and via a successful IPO of iQIYI Inc (IQ US). Given the valuations of iQIYI Inc (IQ US) and Ctrip.com International (ADR) (CTRP US), we believe Baidu’s core search business is undervalued.

In ANTYA’s view, the worst is behind Tesla Motors Inc (TSLA US). A barrage of criticism in the media failed to dislodge current management at the AGM on June 5, 2018. Furthermore, the update provided by Musk was as per the expectations of long-term shareholders, whereas those looking for additional ammunition to vilify Tesla's management went home empty-handed. Although Tesla is not out of the woods either operationally or financially, there is enough head-room on both counts for the optimists like us to maintain our bullish view on the stock.

The U.S. economy is firing on all cylinders. The Fed is bound to stay the course and, in our belief, will deliver more rate hikes than the market anticipates. EM investors should stay in large capitalisation, export-driven and domestic currency denominated debt-oriented companies with strong balance sheets. There will be more volatility ahead.