I say, you’re not wrong.
I was negative but to be honest, I didn’t expect it will get this low. I think buying now with 3 to 5 year horizon (so size it properly) could very will provide 2x, 3x return. The issue is not valuation, business but political and uncertainty around listing. I hope they would have resolved in one way or another.
The issue is not valuation, business but political and uncertainty around listing.
If this is the case, how do you even invest in this? Speculating on political outcomes seems foolish.
tecmo
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I think US and China will resolve their listing or BABA will go to HonkKong as primary listing and Chinese administration will realize they have nothing to gain by strong arming the internet companies, all in time, and once the market has seen that the valuation could jump. The key is in all these, BABA’s business model is not broken. They are still making tons of money and the low share price could allow them to buyback. Of course there are uncertainity, hence you size the position properly. Don’t make it like 20%, 30%, but 3%.
this is like when Fiat was trading in Europe. no analysts there liked it. When it got listed in NYSE and analysts started covering it , it flied.
American don’t like baba on nyse. Lets if how mainland investors vote when they buy using the southern connect program.
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