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Today (or tomorrow morning, actually, October 2) I’m adding Tencent Holdings (TCEHY) to my 12-18 month Jubak Picks Portfolio. (The stock is already a member of my long-term 50 Stocks Portfolio. As I wrote in my Special Report: 10 Picks for the Emerging Markets bounce, if I was going to buy only one stock for the bounce, this would be it. (That Special Report went out to subscribers to my site.The shares were down 31% from January 23, 2018 to September 20. The company forms, with Alibaba (BABA), the big Internet duopoly in China. To me Tencent is more attractive in any potential bounce than Alibaba because 1) it’s down more (Alibaba is down only 19.2% from January 26 to September 20) and 2) I think the company’s emphasis on messaging, gaming and media (plus e-shopping) gives it more upside over the long run than Alibaba’s greater emphasis on e-shopping. The company’s We Chat messaging platform dominates that market in China with 700 million users. Which has enabled the company to build its Tencent Music Entertainment into the largest global music service with 120 million subscribers. The company’s computer gaming unit, We Game, is the world’s largest computer gaming company with a massive presence in online mass gaming in China and Asia. Tencent Holdings has recently moved into the streaming media business and the production of original content.

The company has also become a prodigious venture capital player, funding new efforts in such fast growing markets as digital payment, international real estate listing (QQ Haiwai), Tencent Weiyun (cloud storage) and ride sharing effort Didi Chuxing. (Didi Chuxing acquired Uber’s China business in August 2016.)

I’m setting an initial target price for Tencent Holdings of $51. The shares closed at $41.16 on October 1.