The run up in the Chinese stocks like BABA and CTRP should start. I would not want to be short in China A's.
CTRP should gap up tomorrow. QUNR's cash burn reminds me of BBRY's while it was imploding. QUNR is diluting its shares with ADR offering and needs Silverlake for financing. These acts show why CTRP is the leader in this area.
QUNR suffered huge loss well in excess of analysts worst case scenario. QUNR is diluting its shares by ADR offering. And QUNR has secured unsecured Silverlake financing. Cash burn reminds me of what happened to BBRY.
Still about 14 million shares below average volume. That's a great deal of buying/selling. I wouldn't want to be on the wrong side of this anticipated volume activity.
I'm long and I'm not depressed. China, my friend, is the present and the future. Anyone who says otherwise is arguing like the blacksmith at the turn of the 1900's saying, "Worry, worry about what, cars and tires."
Get a grip, my friend, on reality.
In my decades of following the market, I have seen many times that when a stock pops up after ER it returns to a lesser base line at or above the pre-ER close, and then about a week later, especially after a weekend, the stock pops upwards on its next run up following a positive ER.
I see that you've been posting since mid March when BABA was trading in the mid 80's. If you've been shorting since then, the pain must be intense.
Saying BABA is overvalued is like saying AMZN is overvalued. Both companies no longer defy logic. They are the logical consequence of investing in companies in the first quarter of this century.
What do you think the reaction of the money managers of the institutional holders of BABA would be to your argument. I'd think your argument would fall upon deaf ears. But that's just my opinion.
Question, if you short, is the shorter responsible for paying the dividends as they come due? If so, then you need to account for them.
Markets down today. China has been pounded this week.
Irrefutable facts: BABA still dominates Chinese web. Chinese economy is strong. BABA is not disappearing anymore than Amazon is.
BABA has its ups and downs, daily or weekly or monthly. So did Amazon. Those who remember back to 2007 and 2009 know what I'm talking about.