Buy gds?

**GDS Holdings Limited ADR (GDS) does not appear to be a compelling buy at this time.** Here's why: 1. **Valuation Concerns**: Despite a fair valuation of $48.48 indicated by its GF Value, the stock is currently trading at $10.88, which suggests that it may be undervalued. However, this needs to be considered in the context of the company's financial health and growth prospects. 2. **Financial Stability**: The company's low Altman Z-score of 0.27 indicates a high likelihood of financial distress, which is a red flag for investors. This suggests that the company may not be financially stable, which could lead to potential bankruptcy. 3. **Performance and Growth**: GDS Holdings has experienced a significant increase in revenue, with a quarter-over-quarter increase of 10.83% showing a positive trend. However, the company has reported a negative EPS growth rate of -143.18% for this year and -44.77% over the past five years. Additionally, next-year EPS estimates are negative, which could be a concern for investors. 4. **Market Performance**: The stock has shown a strong performance over the past year, with a gain of 50.04% and a six-month performance of 116.24%. However, the recent price performance has been down-trending, with a drop of -0.41% over the past week. 5. **Insider Transactions**: Recent insider transactions, such as Qian Yixin and Liang Yan buying shares, could be seen as a positive sign by some investors. However, these transactions alone do not justify a purchase decision. 6. **Analyst Ratings**: Analysts have provided mixed ratings for GDS Holdings, with RBC Capital Mkts upgrading the stock to Outperform and setting a target price of $14, while HSBC Securities and JP Morgan have given Neutral ratings. In conclusion, while GDS Holdings has shown some positive signs, such as a recent revenue increase and analyst upgrades, the company's financial stability concerns and negative EPS growth rates suggest a cautious approach. Investors should carefully weigh these factors before making a decision to buy GDS Holdings Limited ADR.