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Online Share Trading

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NPN --- Tencent

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Mr_Money
Regular Contributor
Tencent to invest $300m in Russian internet company Digital Sky Technologies (DST). DST has a 3.5% stake in Facebook. Wonder how this deal will affect Naspers share price (NPN)?
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23 REPLIES 23
SimonPB
Valued Contributor
wonder no more .. NPN -150c or -0.48% ..
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Mr_Money
Regular Contributor
Simon , I meant in the long term. By the way , how can move my NPN and MTN shares from Compu share to my on-line standard bank account? How long can this process take ?
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SimonPB
Valued Contributor
takes a couple of days .. costs about R70 odd per share .. forms via my call center or on the website .. help and education .. share transfer ..
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Mr_Money
Regular Contributor
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SimonPB
Valued Contributor
NPN stake in FB works out at about 0.35% ..
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Dina_1
Occasional Contributor
I don't understand why the market is reacting negatively to the news - both Tencent's and NPN's shares down. Surely this should be a good investment in the long term? If anyone has a view on that matter, I would like to hear your thoughts.
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Mr_Money
Regular Contributor
Hi Dina , the stake to NPN is rather small. The DST stake in facebook is 3.5% value = $100 million. Tencent stake in DST is 10% , so that that would make tencent indirect stake in facebook = $10 million. NPN stake in Tencent is 35% so , that would make NPN indriect in facebook stake at only $3.5 million. I do however feel that social networking and web/mobile based services will grow in the future due to the fact that nost of the developing world (NPN/Tencent operates in this space)still do not have access to the internet.
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Dina_1
Occasional Contributor
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john_1
Super Contributor
well last time I checked face book does not earn cash so 3 billion valuation seems steep to me.?
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richardw
Super Contributor
FB is doing about a billion $ turnover, and it'll definitely climb. There are some things afoot that make them very serious players.
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john_1
Super Contributor
thanks for that I did not know that, although I can see that revenue potential is there.
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Mr_Money
Regular Contributor
Facebook and google earn money through advertising on their portals
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richardw
Super Contributor
One huge area that they could win - what is called "LBS", or location-based services. Many, many companies are trying to compete on this, and the thinking is that Facebook has a huge advantage because they already have deep knowledge of 400+ million users - what they like and discuss, what apps they use, what their status is, are they married, did they go to business school. Google doesn't have anything close to that much insight. So they'll use that to move in on yelp.com, foursquare.com, gowalla.com's territory and crush them all.
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richardw
Super Contributor
Also - DST owns some of Zynga, which has 5 of the top 10 Facebook games. They are *killing* it on FB. They copy others' games, improve them, use their existing network of games to market them. Seriously good investment that, despite how flaky it sounds. They own Farmville, for example - every kid and their dog hoeing crops, or whatever happens there. So DST wins twice as FB grows.
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Not applicable
Twitter has also started feathering their nest with advertising
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Not applicable
Yip. 12 year old daughter says all her friends play farmville. Customers for life potential here.
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KJR
Frequent Contributor
Bottom line is, where do you see the price heading.Seems to have reached the short term support levels.
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Not applicable
PE in excess of 30, div yields less than 1%, price over 3 times NAV ... rand strength offsetting foreign gains, there is a lot lot loootttt of future revenue priced into this share! Having said that though, it is definitely lining up for a quick trade
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SimonPB
Valued Contributor
skaap .. yip, an those numbers (PE.DY/etc.) say one thing .. growth stock .. an either one has a strategy that buys growth stocks, or one doesn't ??
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