Boy Jack is jumping Ship in two weeks as he cashing out his Baba stock and invests outside the company. Not a good sign when top level executives at Baba sell stock and move it else were. Watch Alibaba stock drop like a rock after Stock Lock Up Expiration since the company CEO just told everyone "he see's further stock decline well into 2015 - 2016. OUCH
so now the question is can all these "lifers" now short the Chinese stock market while in Jail?
Black Monday a Cometh.
Longs are going to feel "Major Pain" come Alibaba September stock lock up Expiration date. With the crumbling China economy - Alibaba (going forward) will show declining sales, declining revenue and weak forward guidance. Simply put, the corrupt Chinese government let the air out of the Chinese economy by posting phony numbers year, after year, after year. There is no 7 percent growth in China economy, much less 4% growth. The China economy will soon be close to stagnant and as it declines Alibaba's projected growth declines (big time). You cannot have a crumbling China economy and expect Alibaba to "hit numbers or projections" Not going to happen. So that is why "Big Boys" will sell their shares in 17 days and Baba stock could hit $35 a share.
"Investors have been in a position for a number of years now where you buy the dip," he explained. "And you buy the dip because growth was being sustained by growth in China, and the financial markets were being sustained by the Fed." These two backstops look to be on their way out. Way out since China has serious economic problems that can't be hidden (anymore) with fake economic numbers and as we know the Fed will raise rate at some point in the near future. The bull is now dying a slow death but SPY longs still don't get it.
And when the CEO of a company tells employees to ignore company stock decline - you know things are bad and going to get worse. A lot worse going forward.
Markets pop up one day due to China rate hike cut. It will be old news tomorrow and world markets will sell off going into the week. But Baba will continues its slide down due to many factors beyond its control.
Jack Ma losing employees right and left due to falling share price
China economy just at the start of a major collapse
Sept. Stock Expiration (release) lets the dogs out - Stock drop sub $40
Counterfeit issues at Baba increase due to China faltering economy
Jack Ma continues to over pay for businesses around the world as if there is no tomorrow
Lastly, Baba future quarterly reports will miss time over time again
Game over for Baba as it stock set is end of the year price around $30 a share. OUCH
Baba short term trend is down, down, down. Every talking head is saying Chinese stock market and economy is heading for a Major Collapse and when that takes place Baba will gall through the floor. There is no stability in this company now since there is no stability in China economy. And with Sept. stock lock up expiration three weeks away - the stock could easily be down 25% come Mid-September. Best to stay on the sidelines and watch the sell off carnage from a distance.
I used to think like you did, but Feye will take your money and kick you in the behind on the way out the door. There have been a zillion hacks over the last year, many major hacks on government and private industry. Yet here we are with Feye trading near its 52 week low and falling behind the competition. Feye is now in a trading range of $27 to $40 and its not going to move out of that range for years. The company has big debt on its books yet can't grow fast enough to break even. I thought way back when - when the stock was trading in the high $20's that it had room to run higher. Way higher. Unfortunately Feye goes one step up for every three step back. Impossible to time and even harder to show a trading profit. Its pretty much a one way street down, until someone buys the company. Which appears to be very low probability now, with the stock market crashing.
Yea - that's what freaking out holding of Baba right now plus the crumbling China economy. Its a double punch to the gut for Alibaba since China economy is now in a free fall just before 1.5 billion shares of Baba get dumped on the market in three weeks. Talk about a freaking train wreck. And you know big investors who got in early on the Alibaba buy will sell on expiration date - since who would want to hold with 1.5 billion shares all heading for the "sell" exit at the same time. SCARY
One or the other will win out but tomorrow should be "green".
At some point investors throw in the towel and dump this stock. Question now is does it happen before Sept. lock out expiration date or on that date? Honestly $50 a share or lower could be coming in September.
From what I understand, Wolfgang loves road kill. Especially with a little greek tzatziki sauce on the side.
and we all know Alexis Tsipras will be gone by September Greek Elections. So long "Free" bail out money.
HSBC Holdings plc says that investors overreacted on yesterday's stock sell off. The investment firm says Alibaba is well positioned to benefit from the growth in online shopping in smaller towns and rural areas. Alibaba's $4.6 billion investment in Suning should extend its logistics network and expand its online-to-offline channels. The next phase of the company's growth is expected to come from smaller towns and rural areas. Suning has 1,600 outlets, 1,700 last-mile delivery stations, and 3,000 after-sales service stations. Its wide network would help Alibaba reach consumers even in remote areas.
In other words "Now Buy Hand over Fist" for long ride up into Triple Digits.
Look for same trend for BaBa. You've got some very smart people running Alibaba right now for increase growth/market share in China and overseas markets. In a few months Baba will start firing on all cylinders - as the stock reclaims 52 week highs and set sights on $200 a share. The second coming of Amazon is coming - you just have to buy and hold for the nice long ride UP.
Agree - its a steal at $36 since any takeover price will easily be double that come freedom from Alibaba holding shares. And should Baba climb over $90 a share or over $100 - Yahoo stock will rocket higher. Buy low - sell high guys and girls and right now Yahoo is dirt cheap.