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The Bulls Christmas Eve buy: Alibaba = ali buy buy not ali bye bye
godawgst
Member, Swaye's Wigwam Posts: 2,522 
Stock is down about $100 since the Chinese Govt has slapped it's wee wee for the Ant IPO and today for shockingly saying Alibab has monopolistic practices which caused the stock to drop by 15%
Founder Jack Ma has been more and more critical of their Govt over there, and so they decided to push back. The good news is Ma left the day to day operations of Alibaba several years agp, b/c of his inability to stay quiet which imo was one of the reasons he left.
Obvious downside is Chinese Gov't decides to make an example of him and the company and pulls whatever levels they have to slowly grind it's advantages away until a competitor takes it place.
Upside is the sum of it's parts is worth more than what it's trading at today, it is the equal of Amazon but with a population it can sell to 5 times greater than the US, and in the press release (along with CNBC anchor who covers China over there) notes how the goverment likes to have companies they can call National Champions which right now Alibaba in that space has in spades (Think a merged Bama/Clemson/Ohio State team the last decade versus the rest of CFB).
Anyway closed at $220. Bought 1/4 of position today. Next buy point is at $200. Think in next 12-15 months it trades back up to $300 so looking at 35% gain.
Merry Christmas to all, and to all a good buy
Founder Jack Ma has been more and more critical of their Govt over there, and so they decided to push back. The good news is Ma left the day to day operations of Alibaba several years agp, b/c of his inability to stay quiet which imo was one of the reasons he left.
Obvious downside is Chinese Gov't decides to make an example of him and the company and pulls whatever levels they have to slowly grind it's advantages away until a competitor takes it place.
Upside is the sum of it's parts is worth more than what it's trading at today, it is the equal of Amazon but with a population it can sell to 5 times greater than the US, and in the press release (along with CNBC anchor who covers China over there) notes how the goverment likes to have companies they can call National Champions which right now Alibaba in that space has in spades (Think a merged Bama/Clemson/Ohio State team the last decade versus the rest of CFB).
Anyway closed at $220. Bought 1/4 of position today. Next buy point is at $200. Think in next 12-15 months it trades back up to $300 so looking at 35% gain.
Merry Christmas to all, and to all a good buy
Comments
This is an issue before congress and while it is political, the more significant aspect is it is also the formal policy of all US exchanges so it does have the support of congressional leaders and will probably get enacted in some form.
The risk as i have read it is that the stocks might go through a delisting process and the outstanding shares would be bought back at a yet to be determined price which would be structured as a private buyout. The fear is that the buyout price may very well be a low ball price which does necessarily reflect the true value of the assets.
Just a heads up ~ I'm not an expert on this, I have not researched it as of yet, and there are a lot of moving parts to the equation.
Here are a couple of articles on the interrelated subjects for those that have an interest.
https://www.fool.com/investing/2020/05/22/read-before-selling-all-us-listed-chinese-stock.aspx
https://www.forbes.com/sites/georgecalhoun/2020/08/11/what-happens-if-chinese-firms-are-kicked-out-of-the-us-stock-market/?sh=53bb14e6287e
https://finance.yahoo.com/news/etf-investors-worried-delisting-chinese-150031090.html
A point of significance that is highlighted is that ETF's are so called institutional investors that have the right to invest directly on foreign exchanges, whereas individual investors do not presently enjoy the same opportunities to do so through US based brokerage firms.
This does not solve the issue of what happens to US investors regarding the shares they own which are issued and are trading in the US market, and I do not have a feel for for the potential impact of that except to say that it may be depressing the value of US Issued and held shares at the present time.
But I’d be skeptical about putting too much of a position in directly unless I was ok lighting that $$$ on fire
Why I also suggested only buying 1/4 postion. If the other shoe drops, or the terminal "accounting regularities" pops up the damage is limited.
Jack Ma, the multibillionaire founder of tech companies Alibaba and Ant Group, went missing after criticizing China's financial system by calling for changes and reforms. Since he's made these comments, Ma has not been seen in public for about two months. Ma is one of the wealthiest people in China.4 hours ago
Cook it.
He dead.