May 22, 2018 A publication from Stansberry Research

The World's Best Investment Deal – No Kidding

By Dr. Steve Sjuggerud


I'll cut right to it...

Naspers is one of the world's 100 largest stocks – with a market value of $110 billion.

It owns dozens of high-tech businesses in media and e-commerce. One of those businesses is a Chinese tech giant called Tencent (TCEHY). I've written about this company many times... It's one of the fastest-growing companies in the world right now.

Naspers currently owns $154 billion worth of Tencent shares.

So with some simple math, you can see that Naspers' stock sells at a $44 billion discount to its stake in Tencent alone – and you get dozens of other businesses FOR FREE.

While a $44 billion discount sounds great on its own, you might wonder what these other businesses are worth. The answer is, they're worth a lot...


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For instance, retail behemoth Walmart (WMT) recently reached out to Naspers. It was interested in Naspers' stake in a tech company called Flipkart, which is like the Amazon of India.

Just two weeks ago, Walmart announced a big deal... Naspers ended up selling its stake in Flipkart to Walmart – for a $1.6 billion profit. (Yes, a $1.6 billion profit, not a $1.6 billion sales price.)

This is just one example of the value of Naspers' other businesses. Naspers is also a world leader in online classifieds (businesses like Craigslist). And it's quickly becoming a leader in food delivery with iFood, a mobile delivery platform in Latin America.

This is barely scratching the surface of what Naspers does.

Naspers' other businesses are mostly private companies, so it's not easy to value them. But if you value them around $20 billion total (which is roughly what analysts say they're worth), and add that to Naspers' $154 billion stake in Tencent, then you have a business that's worth $174 billion today – but that's selling for $110 billion in the stock market.

So Naspers is selling for a $64 billion discount today.

I'm not sure where else on Earth you can get a $64 billion discount on anything. But you can – right now – by buying shares of Naspers.

Naspers is actually a South African company, so its shares primarily trade in South Africa. However, you can buy it over-the-counter in the U.S. with the symbol NPSNY.

I highly recommend you check it out... It might just be the world's best investment deal...

Good investing,

Steve

Further Reading

"WeChat is Tencent's 'do everything' app," Justin Brill writes. "It's already the most dominant digital 'ecosystem' in China. But it continues to grow rapidly..." Get the latest news on this revolutionary business right here: One of Steve's Favorite Companies Continues to Shatter Expectations.

"Right now, investors are scared of investing in one part of the world," Brett Eversole says. And as he explains, it's setting up a major opportunity. Learn more here: How to Safely Make 20%-Plus Outside the U.S.

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Market Notes

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Lately, we've highlighted the e-commerce revolution and its effects on the retail sector. While many traditional retailers have suffered from the shift to online shopping, some are bucking the trend. Today, we check in on one brick-and-mortar survivor that might surprise you...

The rise of e-commerce businesses like Amazon led to a wave of store closures for department store Macy's (M). The company shuttered nearly 70 locations last year alone – and its stock fell more than 70% from its peak in July 2015 to its most recent lows. But now, Macy's is beginning to turn things around... The company released better-than-expected earnings reports for the last two quarters. Most recently, same-store sales jumped about 4% from the year before. Macy's also increased its earnings expectations for 2018.

As you can see in the chart below, Macy's stock has skyrocketed nearly 100% since its November lows. Shares are trading at fresh 52-week highs. This company may survive the retail "death spiral" yet...

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