We take our third look at JD.com (JD) by speaking with Mithra Forensic Research, an analyst who wrote a bearish piece on the company in May that seemed to play out. We discuss whether the company's accounting issues - delayed payments and financing-fueled revenue growth - have abated, why China companies often show up in short-sellers sights, and what to make of JD's investments in other Chinese companies.
Topics covered
2:40 minute-mark - Running through 2018 and whether JD's challenges will persist 9:30 - Why is negative working capital/delayed payments a problem? It's in the volatility and pace of change 17:30 - Getting into the financing problem for JD's growth in revenue 23:30 - The spin-off of JD Finance (aka JD Digits) and a side effect of it 25:45 - Comparing this to Conn's (CONN) and Deere (DE) for financing stories, the benefit of low interest rates, and the twist 30:30 - JD's other Chinese company investments and the halo effect, or how good is JD at stockpicking? 35:00 - VIPShop and thinking through China governance challenges vs. what we see at home 43:30 - The concerns about the CEO - we're back to governance 47:15 - What is the actual valuation method we should apply to JD?