KE Holding.

Company Overview.

Beiki (NYSE:BEKE) is the leading integrated online and offline platform for housing transactions and services in China. They are a pioneer in building the industry infrastructure and standards in China to reinvent how service providers and housing customers efficiently navigate and consummate housing transactions, ranging from existing and new home sales, home rentals, to home renovation, real estate financial solutions, and other services. They own and operate Lianjia, China’s leading real estate brokerage brand and an integral part of their Beike platform.

They have more than 19 years of operating experience through Lianjia since their inception in 2001. Such extensive industry experience has provided them with distinct insights into markets, business conditions and customer needs, which we believe are critical for us to offer effective and practical solutions.

Is BEKE a good pick?

Beike seeks to change the retail sector, with the help of new technologies such as AI (Artificial Intelligence), IoT (Internet of Things), and virtual reality, its business model is putting new rules in the game. The numbers are clear, the company tripled its sales in the last three years and in 2020 reported 70.4 Billion in its annual report, thanks to the new strategies with its innovation platforms, The company is giving other alternatives to its customers and different experiences. but on the other hand the gross profit was almost 1% percent of total sales. That means sales have been good, but in short, the company did not make money last year, and 2021 has been more difficult than 2020, in the current month of December, the law firm Schall announces that it is investigating claims on behalf of investors of KE Holdings, for violations of securities laws, The investigation focuses on whether the Company issued false and / or misleading statements and / or failed to disclose relevant information to investors. We will have to follow the case in the coming months to see how it evolves.

Technical Analysis.

From February 21, 2021 to August 23, 2021, the price fell 73% and started a sideways movement between $15.74 and $25.80.

Analyzing our indicators we observe that the MACD is playing with its signal since early November and it seems that it will rise above and cross it but, then it will fall and return to the same cycle, we must look for a good signal supported by another indicator such as the RSI and if we look below the MACD we find that currently, the RSI is in a neutral zone and if it starts to rise, that means a call to take a position in this BEKE sideways movement play.

Another important point is that the price has strong resistance at $15. 76 (blue line) and currently there is not enough strength to fall below that price, more sellers are needed.

In the best case scenario for the next two months, BEKE could have a good 30% revaluation following the sideways move, but we have to be careful and smart when selling our position so it is necessary to look at our indicators to make a good decision and not get trapped for the next downside.