Well...a third law firm wants to file a class action...that means that there are at least 3 investors that are seriously angry at BABA. I don't consider BABA to be a long-term investment at this time.
Yes, the SEC can still file charges, that's simply part of the deal. BABA's attorneys met with SEC attorneys over lunch somewhere on Wall Street and a deal was made and confirmation letters were sent out. Of course, this is just speculation on my part.
In BABA's recent filing they said that there's a SEC investigation. So basically, what the SEC did was tell BABA you need to come clean in the filing, otherwise we will file charges. BABA already knows that they violated federal law otherwise they would not have made this kind of deal.
I've decided that Jack Ma can't really be Chinese, it's totally bad luck to brag before you've been successful. Let's see if BABA can reach their IPO price and avoid bankruptcy first.
BABA is trading well today, however, there are momo traders that won't hold BABA into the weekend. There will be profit-taking near the close.
I've been doing litigation for over 20 years. The first rule for litigators is it's all gray. This means if there is big money involved, then if you can make a decent argument the law has been violated, you file a lawsuit. The two firms did that quickly. Let the Judge decide whether federal law has been violated.
Look at YHOO headlines for BABA, 2 law firms have already filed lawsuits and there will probably more lawsuits down the road. The firms didn't become rich by filing frivolous actions.
Of course the found out BABA violated Federal laws. The SEC knows that investigating BABA is a political hot potato, they don't want to upset U.S.-- China business relationships more than they have to. So they already know the violations occurred. Now they are just waiting for Jack Ma to pay them off, and when he tries to bribe them, he will be hand-cuffed by the FBI.
The Big Boys don't actually trade for a living, the hedge fund guys do it for them. Many of the hedge fund guys will get out soon because they want to keep the Big Boys happy. It just makes sense, it's almost impossible to explain to someone that you knew of the investigation being initiated but you didn't reduce your position? And you lost money.
They take forever...wait till the Chinese Communist Party berates Jack Ma for embarrassing Chinese corporations doing business internationally.
To me, it appears like after the dust clears, YHOO non-core will continue doing business and retain BABA shares. But who knows...almost anything could happen.
Shorts have already covered. Looks like some people were expecting big news from Chinese government so all the China stocks popped. If news doesn't come out during AH or tomorrow's premarket, BABA may gap down tomorrow am.
Strange trading today. It sure seemed like some people were expecting important news to be released. If the news isn't released during AH or pre-market, we could just as easily gap down at the bell tomorrow morning.
Buying options at this time would be a mistake because BABA hasn't gone anywhere for a couple of weeks. It's unknown how long this situation will. At this time the only way an option trader can make money is by going short.
It's pointless to gamble on the weekly options...BABA weekly options have no liquidity. If you want to speculate...focus on the monthly options.
I pretty much agree, probably at least 6 months before IPO. Then there's always the possibility that Alipay may stay a closed corporation.