Couldn't agree more. Loading the boat on this dip in this, VIPS and CTRIP.
It became known that Chanos and a number of other big hitters were short baba and long JD. This whole down move is a giant run on them to stop them out. at these levels, anyone with a stop loss is gone.
Going up from here.
I don't see how. AMZN has a $338 billion valuation on $113 billion in revenue. JD has a $28 billion valuation on $30 billion of revenue. Mr. market can only play these games for so long. This is a fast growing company in the number one growth market in the world.
You DON'T DO THAT in this situation. Credibility is the number one issue and this just killed whatever sense of trust they had built back since filing and stating in March. Back to square one. Better be one hell of a conference call.
You can't come out in March and say, "this is the deal..." then come back in June and cut the already cut forecast by another 15%. New CEO off to a HORRIBLE start.
Analysts did their pumping this morning and the funds did the dumping all day. Look at that volume. In the end, there are a number of ways to play the China growth story. You don't need to be invested in a company with an accounting fraud investigation going.
Alibaba management needs to do what's necessary to gain the trust of the investing public by submitting to a transparent, independent audit and put all of the rumor mongering to bed, once and for all.
Currently, the stock is in an impossible situation, will continue to fight perception and languish far below its true value. If they do this audit and come out clean, it doubles.
As a shareholder, I'm demanding it. They've ignored the situation for too long and any further delay, in my opinion, is an admission of guilt. All the business gains in the world won't do for this stock price what one thorough, independent audit could do overnight. What are they waiting for?
Lol. Who would short a company that lies about their numbers? How will they ever miss earnings?
Shorts are going to get blown out by these numbers. This is the best, big cap growth company in the world. Makes way, way, way more money than AMZN, has a much, much, much better valuation and operates in a much, much, much bigger market.
Annnnnd, we're up .58 cents. On a day with not only amazon but the dollar weakening against the yuan. I guess we're heading to for a PE ratio under 10, with 30 percent growth.
Someone is unloading like they can't get rid of it quickly enough. Either they know something or need to raise capital to get into something else. Never a dull moment.
They are setting up internet connected centers in the villages. So far, they have 12,000 of them in place. It's called Rural Taobao. They are the only connection to the world and people buying and selling will be exclusively be on Baba platforms. The company anticipates setting up 100,000 centers in the next three to five years.
Growth for as far as the eye can see.
Baba is the engine of the Chinese economy. They are the one's with the plan to go make consumers out of the 900 million people living in 600,000 isolated villages across the vast country. Do you think the Chinese government is in a position to crack down on that? Of course not.
Didn't this close just under $80 yesterday? What print are they using? Looked like it gapped down overnight and should be listed as down $1.30 something on the day.
LOL. What they're attempting to do....transition a $150 billion company from high margin, impenetrable markets into an array of small acquisitions in low margin, highly competitive markets, is a complete joke. I'm laughing at you for believing in it.
The only winners are the owners of the start ups they're buying and shorts. You're neither. Enjoy the losses, they will be piling up. This is just the start.
Just a reminder, the company buy backs are either over or about to end. $1 billion flushed down the toilette. $300's ahead, nothing to support this piggy, now.
The new business is 37% of revenue and increasing at 13% a year. The old business is declining at a much more rapid pace and that will accelerate.
This company is making a massive gamble in non-core areas, with less margin and more competition. The debt pile increases by the quarter as the sending folly continues.
This will end badly. Very badly. They should have returned money to shareholders, cut costs in accordance with the business decline and accepted that IBM would be a smaller company, going forward. Instead, they irresponsibly ended up rolling casino dice with shareholder money in a disparate array of business they know little about and it will end badly. Of course it will end badly, we're seeing it quarter after quarter.
Plenty of Cash? They are $35 billion in debt. They're taking all sorts of shots trying to buy a disparate group of companies and somehow put it all together into something coherent. Why would you bet on that working out?