If Sea Fell to $100, Would You Buy the Dips?

MillionaireTiger
2022-02-15

What happened

  • Sea’s stock sank as much as 19% in New York on Monday, the steepest decline on record.
  • India has banned 54 apps it says are of Chinese origin, including Sea Ltd.’s marquee game Free Fire, citing security concerns.

Since reaching an all-time high in November last year, Sea has gone downhill.

Sea has been focusing on building a gaming and e-commerce business globally with early backing from Tencent, the largest shareholder of the company. 

Free Fire: the battle royale shooter often compared with PUBG, is among the world’s most popular mobile games with more than a billion downloads on Google Play. The title has underpinned the phenomenal growth of Singapore-based Sea, Southeast Asia’s most valuable company, and its expansion into markets from Brazil to India. In fact, Free Fire India might account for less than 10% of Sea’s gaming revenues.

Shopee: Investors worry that India could potentially also ban Shopee, the second pillar of Sea’s business, where it had about 300 employees and 20,000 local sellers as of December. On Monday, Li reassured shareholders at its annual general meeting that the company had a grip on the situation.

“Sea is a Singaporean company and we aim to partner in India’s digital economy mission,” the company said in a statement. “We are committed to protecting the privacy and security of our users in India and globally, we comply with Indian laws and regulations, and we do not transfer to or store any data of our Indian users in China.”

The most immediate question is whether Sea can appeal India’s decision and reverse it -- or if it fails, whether that ban will extend to its other businesses in the world’s fastest-growing internet economy.

SHARE YOUR THOUGHTS

If Sea fell to $100, would you buy the dips?

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  • MillionaireTiger
    ·2022-02-28
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      2022-02-28
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  • Humbly
    ·2022-02-16
    At $100, I think SEA will start to look attractive given its vast  reach into the ASEAN market.Despite what has happened in India, I think it is still an attractive buy
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  • Chilli Padi
    ·2022-02-18
    India is a good friend of Singapore. Positively the ban will be over for Sea. In the unlikely event that the price of sea nosedived to below $100 (50 day MA $180) I would grab the shares.
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  • RobinChanKH
    ·2022-02-19
    I will buy the dip as i see it as an opportunity. Waiting for it to reach $100.
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  • Ultrahisham
    ·2022-02-17
    Yes Sea will be a good consideration at $100! Honestly still find Sea valuations a bit stretched at the moment in this environment.
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  • luckyone
    ·2022-02-17
    I think so. currently $100 seems like a good buy
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  • 来真的
    ·2022-02-16
    Good sharing. Besides india. Sea still have potential in our countries up there. So grow potentisl still intact. Worth consider at 100
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    • cutemiao: 
      Nice
      2022-02-16
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  • Tiger7989
    ·2022-02-17
    Time to run, they are far better stocks out there. Good luck!
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  • serenepehjy
    ·2022-02-17
    No, I don’t think they’re doing well financially, and dropping to $100 is a bad sign
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  • CheeseKnlght
    ·2022-02-17
    I will buy small even with SEA hitting $100 or so, the volatility is still present
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  • A Jay
    ·2022-02-16
    definitely yes... would buy big if it drop to $100
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  • ahswee
    ·2022-02-16
    $Sea Ltd(SE)$ is definitely a buy if it hits $100. But it has risen close to $150.
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  • koolgal
    ·2022-02-28

    Thanks  for your wonderful coins which will be put to good use.  Congratulations to all my Dear Tiger Friends who have won too. I have enjoyed participating in this enjoyable  event. 👍😊🎉🎊🎉

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  • Matrix Rev
    ·2022-02-19
    If it reaches 💯 means that SE is weak. I like to see how 100 support holds. If it consolidate at support and move up that will be a buy sign. When support fail then sell it.
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  • ValuInvestor
    ·2022-02-17
    At 100 possibly. Have to assess the market sentiment at that time to determine if there is further risk to downside for growth tech. At the moment, I dont see further much downside after earnings
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  • Casimir
    ·2022-02-17
    Below $100, will buy !
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  • BLWM
    ·2022-02-17
    I will buy the dip on $Sea Ltd(SE)$ as it has great growth drivers in e-commerce that will become the bulk of its business, while free fire and the gaming business acts as a cash cow
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  • ckng11
    ·2022-02-16
    ofcourse. is not a china company and SEA region is like china of 2008.. no regulation ala china now. sea will grow their revenue and eventually turn profit on their shopee unit.
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  • Donatsu
    ·2022-02-19
    no, I will buy other assets instead that have more future planning like or historical record proven
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  • Cazwyh
    ·2022-02-17
    I wont buy until there is stong support it can generate sustainable profit and hence giving value back to investors.
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