Our first Top Pick update is a Chinese cloud company whose shares were recently initiated at Guggenheim with a ‘Buy’ rating. And our second update is an online automobile services company that beat analysts’ EPS estimates by $0.08 last quarter.
GDS Holdings (GDS)
From Cabot Emerging Markets Investor
GDS Holdings (GDS) has been a volatile performer since it moved out of its post-IPO base in the middle of 2017. The stock spent two of 2018’s six months trading in a tightening range, finally getting organized in April and breaking out to new highs in May. The stock has pulled back from its June 14 high at 46 but bounced off its 50-day moving average. The volatility will likely continue, but the GDS Holdings story (Chinese server farms) is simple and powerful. I still like it.
Paul Goodwin, Cabot Emerging Markets Investor, www.cabotwealth.com, 978-745-5532, July 3, 2018