It may just be the most interesting large company you've never heard of... But it's firing on all cylinders, which is why we just recently added it to the Maximum Profit portfolio.
On the surface, it looks like a normal internet and media company. But it's much, much more than that...
In fact, South Africa's Naspers (OTC: NPSNY) is about as unique a company as you'll ever come across. It's a venture capital-like firm that owns a portfolio of some of the top internet companies across the globe.
Many of the companies it owns are firms that you've likely never heard of, with one notable exception: Chinese tech giant Tencent (OTC: TCEHY).
For those who may be unaware, Tencent is one of the internet giants of China, and the company has its hands in everything from social media to gaming to payments to artificial intelligence and more. In fact, it's the sixth-largest internet-focused company in the world in terms of revenue. Naspers first invested in Tencent in 2001 and is the company's largest shareholder, controlling over 31% of shares outstanding. That position alone is worth more than $146 billion.But get this... Naspers' market cap is only $110 billion. That's less than the value of its holding in Tencent alone. And Tencent isn't its only investment... Naspers holds positions in more than 55 internet and media companies around the globe.
Some of the companies in its portfolio include Flipkart, which is like the Amazon of India. It owns Russia's version of Facebook called VK, which is owned by Mail.Ru (OTC: MLRYY), and it owns more than 90% of OLX, an online classifieds site (like Craigslist) in Brazil, India, Indonesia and a few other countries. Then there's the "PayPal" of India that it has an investment in called PayU. Another one of its investments is in a mobile classifieds app called letgo, which allows people to easily buy and sell items locally.
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I could go on and talk about its different investments in food delivery, mobile payments, classifieds, and social media companies, but I think you get the point. The bottom line is that Naspers has stakes in companies that are valued much more than what Naspers itself is currently trading for. That likely won't last long...
The company generated $6.9 billion in revenue last year, a 10.5% year-over-year increase. Meanwhile, cash from operations went from a $158 million loss in 2017 to a $282 million gain last year. It maintains a strong balance sheet, with nearly $12 billion in cash on hand compared with just $3.3 billion in debt.
It's worth noting, however, that this stock is heavily tied to the fate of Tencent, as it makes up the majority of the company's portfolio. Should the company struggle, shares of Naspers will likely follow suit. That being said, my Maximum Profit system recently flagged this stock with a score of 92, which is one of the strongest we've seen all year. That's why we recently added it to our portfolio, and you should consider doing the same.
(This article originally appeared on StreetAuthority.com.)