Personally, I think it's uninvestable for two reasons.

First, its share returns are not a function of its business results, as both of those are at the whims of a rather capricious government. Further, neither that government nor management cares at all about returns to minority foreign shareholders, except during brief moments that there is an advantage to be had from being perceived that way.

And second, unless you are in China you can't buy shares in Pinduoduo, you can only buy paper in a third jurisdiction which claims to have contracts to track the fortunes of actual Pinduoduo shares. PDD is a VIE, like BABA. (not to be confused with the actual businesses Pinduoduo and Alibaba)

None of that means that the price won't go up. But I think it's a "Rule #1" situation.

Jim

Non-US Stocks FAQ

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