|Bid||0.00 x 3000|
|Ask||0.00 x 28000|
|Day's Range||19.41 - 19.68|
|52 Week Range||19.25 - 79.18|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 29, 2019 - Nov 4, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||76.00|
Successful investors are always balancing risk and reward depending on their own personal risk tolerance. One common metric used to gauge risk is price-to-book ratio, or P/B. A company’s book value is ...
Hedge fund managers like David Einhorn, Bill Ackman, or Carl Icahn became billionaires through reaping large profits for their investors, which is why piggybacking their stock picks may provide us with significant returns as well. Many hedge funds, like Paul Singer’s Elliott Management, are pretty secretive, but we can still get some insights by analyzing […]
Altaba—the former Yahoo—has a market value of around $10 billion, yet shareholders can’t cash in their stock via an exchange. The company filed a plan of liquidation and dissolution in Delaware on Friday, and the Nasdaq Stock Market stopped trading in the security. The final day of Nasdaq trading was Oct. 2.
Altaba Inc. (“Altaba” or the “Fund”) (AABA) today announced that it filed a certificate of dissolution with the Secretary of State of the State of Delaware, as contemplated by the Plan of Complete Liquidation and Dissolution (the “Plan”) previously approved by the Fund’s Board of Directors and stockholders. The certificate of dissolution, which became effective at 4:00 p.m. Eastern Time on October 4, 2019, provides for the dissolution of the Fund under the General Corporation Law of the State of Delaware. In connection with the filing of the certificate of dissolution, effective as of 4:00 p.m. Eastern Time on October 4, 2019, the Fund closed its stock transfer books and discontinued recording transfers of its common stock, $0.001 par value per share (the “Shares”).
The former Yahoo! will stop trading on the Nasdaq at the close of business on Wednesday, but it’s unclear just where and when trading will resume.
Altaba Inc. (“Altaba” or the “Fund”) (NASDAQ:AABA) today announced that The Nasdaq Stock Market LLC (“Nasdaq”) has advised the Fund that it intends to halt trading in the Fund’s shares of common stock, par value $0.001 per share (the “Shares”), on the NASDAQ Global Select Market following the close of regular trading at 4:00 p.m. Eastern time on October 2, 2019, in anticipation of the Fund’s filing of a certificate of dissolution with the Secretary of State of the State of Delaware on October 4, 2019. Nasdaq has further advised the Fund that it intends to maintain the halt in trading in the Shares until confirmation of the filing of the certificate of dissolution, and that upon confirmation, Nasdaq intends to indefinitely suspend trading in the Shares prior to the opening of trading on the NASDAQ Global Select Market on October 7, 2019.
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The former Yahoo! paid $51.50 a share to its holders Monday. Investors stand to make an estimated $3, or 15%, as the liquidation process plays out over the coming years.
Shares of Altaba Inc. were trading in Tuesday's premarket at a price that is 73% below Monday's close, following its previously announced cash distribution as part of investment fund's liquidation plan. The company announced earlier this month a distribution of $51.50 in cash per share, to be paid Sept. 23 to shareholders of record on Sept. 16. The stock closed at $70.80 on Monday. Late Monday, the company said it plans to file a certificate of dissolution following the close of trading on Oct. 4, after which the company will close its stock transfer books. "The Fund expects that any purchases or sales of the Fund's shares that are not settled prior to the filing of the certificate of dissolution and the closing of the Fund's stock transfer books will not be settled," Altaba said in a statement. "Consequently, stockholders who hold their share directly on the books of the Fund's transfer agent [Computershare] and will to sell shares prior to the closing of the fund's stock transfer books will not be able to do so after September 25, 2019 other than through an account with a bank, broker or other participant in [The Depository Trust Company]."
Altaba Inc. (“Altaba” or the “Fund”) (AABA) today announced that, in furtherance of the liquidation and dissolution of the Fund pursuant to its Plan of Complete Liquidation and Dissolution (the “Plan”), the Fund intends to file a certificate of dissolution with the Secretary of State of the State of Delaware immediately following the close of regular trading on the Nasdaq Global Select Market on October 4, 2019. Upon the filing of the certificate of dissolution, the Fund will close its stock transfer books, after which record holders of the Fund’s common stock, par value $0.001 per share (the “Shares”), will be prohibited from transferring record ownership of their Shares, except by will, intestate succession or operation of law.
It would seem like the news has been pretty good of late for Alibaba Group (NYSE:BABA) stock … with one obvious exception. The last two earnings reports have looked impressive. The overhang of a major stockholder is ending. And yet Alibaba stock has stayed stuck, trading sideways since February.Source: Nopparat Khokthong / Shutterstock.com To be sure, the U.S.-China trade war presents an apparent stumbling block in front of BABA stock. But rival JD.com (NASDAQ:JD) has outperformed Alibaba shares of late, while facing the same trade-driven macro headwinds at home.JD isn't the only Chinese stock with better returns. Yes, Alibaba Group shares have returned 27% so far this year. That's better than the 16% average of China's 21 U.S.-listed large-cap (>$10 billion) stocks. But that return puts BABA stock just seventh in the group, well behind leaders New Oriental Education & Technology Group (NYSE:EDU) and Pinduoduo (NASDAQ:PDD), the latter of which has almost doubled in the last two-plus months.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo, relative underperformance, a cheap valuation, and Alibaba's market-leading status would seem to clear a path for BABA stock to finally break through $200 and beyond. After all, it's hard (though not impossible) to see external conditions being much worse, yet Alibaba has grown earnings and Alibaba stock has managed to rise.That path is open. But the concern has to be that if BABA shares stay stuck, it could signal they're going to be stuck for a very long time. What's Gone Right (and Wrong) for Alibaba StockAlibaba Group has had some headwinds in 2019. The trade war has pressured consumer and business confidence in China, as several companies have noted in recent months. Protests in Hong Kong have only added to the geopolitical risk, and likely led to Alibaba's decision to delay its listing on the Hong Kong exchange. * 7 Deeply Discounted Energy Stocks to Buy Major shareholder Altaba (NASDAQ:AABA) is liquidating its Alibaba stock. According to Alibaba's second quarter release, that company (formerly Yahoo!) sold almost 10% of Alibaba shares outstanding between May 20 and August 9.There are pressures on the business and pressures on the stock. And yet Alibaba has posted strong back-to-back earnings reports. Revenue increased 51% year-over-year in the fiscal fourth quarter (ending March) and another 42% in Q1. Adjusted EPS handily beat Street estimates in both quarters.Meanwhile, BABA stock hasn't exactly soared -- but it's held up. The stock bounced from levels around $150 in late May, amid the Altaba selling, and has neared $180 three times in the past few weeks.Given those external pressures, the case for BABA stock here is that in a tough environment, investors still were happy to buy and/or own shares. So what happens when that environment gets better? After all, Altaba's liquidation is likely over at this point. The trade dispute should be resolved at some point, even if that point isn't necessarily anytime soon. Put another way, it seemingly only can get better for Alibaba Group, and for Alibaba stock, from here. Long-Running Concerns About BABA StockThe catch is that for some investors, it's not going to get better for BABA stock. To bears, Alibaba has significant structural problems. Its VIE structure -- shareholders actually own a piece of a variable interest entity in the Cayman Islands, not Alibaba itself -- makes BABA a no-go for some investors.Accounting issues have long dogged the company. They were raised again in the decision to go forward with the Hong Kong listing. As I noted at the time, it was strange for Alibaba to sell stock at seemingly cheap prices to raise capital when it had plenty of cash already. Indeed, the company is paying $2 billion to acquire Kaola from NetEase (NASDAQ:NTES), a deal it is financing from cash on hand. * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off There have been worries about self-dealing, highlighted by Alibaba's move of Alipay to former CEO Jack Ma. And many investors ignore Chinese stocks altogether, worried about a "hard landing" or, worse, an implosion of the economy still run by a nominally Communist single party. Can Alibaba Group Stock Finally Rally?Those skeptics admittedly could be wrong. "Hard landing" predictions, for instance, have been made for at least this entire decade. The VIE structure could change once Chinese regulations do. And, to at least some extent, a 20x forward P/E multiple incorporates those risks.But at least for now, those skeptics and that skepticism seem to matter. They're at least one reason why a proverbial lid has stayed on BABA stock. (Shares at this point haven't moved for two years now.) They're why, to some investors, Alibaba stock seems like a generational opportunity: an e-commerce leader in a country with over a billion citizens trading at a discount to many U.S.-based large caps with minimal growth. Other investors simply see the stock as a trap at almost any price.If the news around Alibaba stock gets better, particularly with the Altaba overhang gone, BABA stock has to rally. Otherwise, BABA starts to look like a stock that looks cheap - and will always look cheap, given the structural risks assigned by the market. As bearish as I've been on BABA, I can see that path to $200+. If Alibaba stock doesn't take that path, however, it might be time to worry.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post If Alibaba Stock is Going to Rally Again, Now is the Time appeared first on InvestorPlace.
Altaba, the former Yahoo, announced a lower-than-expected initial distribution as part of its liquidation program as the company appears to be taking a conservative approach to dealing with potential future liabilities.
Altaba Inc. declared Friday a pre-dissolution liquidating distribution of $51.50 in cash per share this month, which was less than originally estimated. The distribution will be paid on Sept. 23 to shareholders of record on Sept. 16. The distribution is part of Altaba's plan to liquidate and dissolve the investment company, which assets consist primarily of China-based e-commerce giant Alibaba Group Holding Ltd. stock. When the Altaba announced board approval of the liquidation and dissolution plan on April 2, the company had estimated a fourth-quarter distribution of between $52.12 to $59.63 per share. Since then, Alibaba's stock has lost 1.5% through Thursday. Altaba's stock was still inactive in premarket trading, while Alibaba shares gained 0.5%. Year to date, Altaba shares have rallied 20.2% and Alibaba's stock has surged 30.6%, while the S&P 500 has gained 18.7%.
Altaba Inc. (“Altaba” or the “Fund”) (AABA) today announced that, on September 5, 2019, the Board of Directors (the “Board”) of the Fund declared a pre-dissolution liquidating distribution of $51.50 in cash per share of its common stock, par value $0.001 per share (the “Shares”), which will be paid on September 23, 2019 to stockholders of record as of September 16, 2019 (the “Pre-Dissolution Liquidating Distribution”). The Fund expects that the ex-dividend date for such distribution will be September 24, 2019, the day after the payment date for the Pre-Dissolution Liquidating Distribution. As previously announced, stockholders of the Fund approved the liquidation and dissolution of the Fund pursuant to a Plan of Complete Liquidation and Dissolution (the “Plan”) at a special meeting of stockholders held on June 27, 2019.
The former Yahoo! will announce its first distribution to shareholders—a cash payout equal to a large percentage of its current market value of $36 billion—ahead of its eventual dissolution.
Moody's Investors Service has affirmed A1 issuer rating and A1 senior unsecured rating of Alibaba Group Holding Limited. "The ratings affirmation reflects Alibaba's leading market position in China, and its solid track record of cash flow generation and maintenance of a strong financial profile," says Lina Choi, a Moody's Senior Vice President. "We expect Alibaba will continue to expand its business scope in a prudent manner, by generating steady operating cash flow and maintaining a financial profile appropriate for its A1 ratings," adds Choi, who is also Moody's Lead Analyst for Alibaba.
Alibaba (NYSE:BABA) decided at its board meeting before the announcement of its first-quarter earnings that it would delay the listing of Alibaba stock in Hong Kong. The company cited the ongoing political unrest on the island as the reason for its decision. Source: BigTunaOnline / Shutterstock.com InvestorPlace - Stock Market News, Stock Advice & Trading Tips"It would be very unwise to launch the deal now or anytime soon. It would certainly annoy Beijing by offering Hong Kong such a big gift given what's going on in the city," Reuters reported a source saying in an article published on Aug. 21.While Alibaba is looking to raise up to $15 billion by listing BABA stock on the Hong Kong Exchange, it understands the politics of China; it wouldn't want to offend anyone in the Chinese government. So, the listing of Alibaba stock will have to wait until the situation in Hong Kong simmers down. * 7 "Boring" Stocks With Exciting Prospects By no means does the company consider the delay a major concern. However, the Hong Kong Stock Exchange must be freaking out. First, Anheuser-Busch InBev (NYSE:BUD) canceled the $9.8-billion listing of its stock on the exchange, and now Alibaba has delayed its listing, resulting in a double blow to the exchange's reputation. As long as Alibaba eventually lists its shares on the Hong Kong exchange, Alibaba stock will do just fine. If, however, the listing is canceled entirely, Alibaba Group stock could suffer some damage. However, it can't hurt to consider what the ramifications of not listing Alibaba stock in Hong Kong would be for the e-commerce giant. Not Listing Would Be CostlyBy canceling the Hong Kong listing, BABA would displease the Chinese government and Chinese investors, who've been able to buy Hong Kong stocks for the past five years. Additionally, listing BABA stock would enable Chinese investors to buy the large number of shares of Alibaba stock that look poised to flood the markets over the next few years. If the listing is canceled, the impending sale of those shares could meaningfully weigh on Alibaba Group stock. Two major firms look poised to sell large amounts of BABA stock. Not only is Softbank (OTCMKTS:SFTBY) open to the idea of lowering its stake in Alibaba, but Altaba (NASDAQ:AABA), the company set up to hold Yahoo's 11% stake in BABA, announced in April that it was planning to liquidate those shares and dissolve itselfFinally, some U.S.-listed companies have de-listed from American exchanges in the past, opting to re-list in China where their stocks tend to get higher valuations. Alibaba Group stock continues to be significantly undervalued relative to Amazon (NASDAQ:AMZN). By listing in Hong Kong, BABA would give itself a better shot at a higher valuation. Of course, if the Hong Kong listing is canceled, BABA won't get the opportunity to raise the valuation of BABA stock. Alibaba's Business Will Be Strong Either WayOne need only look at BABA's Q1 results to know Alibaba's business is doing just fine.Its revenue grew 42% year-over-year and its operating income increased 27% excluding share-based compensation, while its free cash flow was a robust $3.8 billion. The revenue of its cloud-computing business, which is considered an up-and-coming part of the company, grew 66% YoY to $1.1 billion. It now accounts for 7% of Alibaba's overall revenue. And the top line of its e-commerce business, which accounts for 66% of its overall revenue, increased 40% YoY in Q1. That jump demonstrates that its legacy business is alive and doing very well. BABA finished Q1 with $30.7 billion of cash and cash equivalents. At the moment, it has plenty of momentum in all of its businesses and the cash necessary to keep those plans moving ahead. With or without a Hong Kong listing, BABA stock will be a long-term winner. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 "Boring" Stocks With Exciting Prospects * 15 Cybersecurity Stocks to Watch as the Industry Heats Up * 5 Healthcare Stocks to Buy for Healthy Dividends The post The Postponement of the Hong Kong Listing of Alibaba Stock Is Nothing But a Blip appeared first on InvestorPlace.
On Sunday, August 11th, BlackRock (BLK) announced that it would be purchasing a roughly 30% stake in privately held Authentic Brands for $875 million, a deal that values the company at over $4 billion. Shares closed down 2.62% in trading Monday.
As the Alibaba (NYSE:BABA) stock price rallies again, something's still missing: Alipay. Alipay and its parent company, Ant Financial, aren't owned by Alibaba … yet. Still, investors already are pricing their value into BABA stock.Source: Shutterstock Indeed, my InvestorPlace colleague Wayne Duggan highlighted Alipay as a "secret weapon" for Alibaba. Wall Street analysts, as Duggan noted, have taken a similar shine to the payment product. It's been compared to PayPal (NASDAQ:PYPL) and Square (NYSE:SQ). Alipay seems to be a reasonably large part of the BABA stock bull case.But Alipay -- or at least its history -- is part of the bear case for the stock, too. That's worth remembering as the BABA stock price tries to make another run to the highs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Alipay and Yahoo!Back in 2011, Alibaba's then-CEO Jack Ma basically took Alipay from Alibaba. Yahoo!, now Altaba (NASDAQ:AABA), which owned 43% of Alibaba at the time, saw its stock fall almost 10% as a result.For its part, Alibaba insisted that Yahoo! knew about the move, which ostensibly was made to satisfy new regulations which prohibited foreign ownership of payment companies. Yahoo! denied it had been told about the transfer ahead of time.The two companies settled the dispute in 2011 by giving Alibaba a 37.5% share of Alipay profits. That was better than nothing for Alibaba and its shareholders -- but a far cry from the 100% of earnings to which they felt entitled. * 10 Tech Stocks That Are Still Worth Your Time (And Money) Then last year, Alibaba said it would take a 33% stake in Ant Financial, Alipay's parent, as part of its rights under an amended version of the 2011 agreement. Alibaba will forego its profit sharing in exchange for the newly issued shares.But more than a year later, that deal hasn't closed. Management commentary has been limited. The regulatory process no doubt is difficult. Still, given Alibaba's history, investors could be forgiven for wondering what, exactly, is taking so long. Questions Surrounding Alibaba StockThe issuance of the 33% stake, should it close, would by no means settle the concerns surrounding Alipay and Ant Financial. The fact that Ma transferred the asset away from Alibaba and to himself suggests a risk of similar self-dealing by other executives. Meanwhile, as Alibaba admitted in filings ahead of its IPO, the supposed restriction that drove the move never materialized. For investors who struggle to trust Alibaba, the Alipay saga is a key reason why.Meanwhile, Alipay's profits evidently plunged last year, with Alibaba's share of fees from Ant Financial dropping by 85% in Alibaba's fiscal 2019. Commentary in the company's 20-F and on conference calls suggest that Alipay is investing for growth. But given that the app supposedly is already entrenched in China -- with some 700 million users, per management commentary -- that decline seems enormous, even with spending on new markets.All the while, there have been repeated steps in the direction of an Ant Financial IPO. Those efforts date to 2016. Yet a potential offering has been pulled on multiple occasions, most recently in 2018. * 7 Defense Stocks to Buy to Fortify Your Portfolio All of these issues, for bears, go to the idea that Alibaba simply isn't trustworthy -- and that the BABA stock price still doesn't reflect that problem. There simply are so many risks here. Alibaba stock isn't even ownership in Alibaba itself. A valuable business unit was pulled out of the company for reasons that still remain unclear. Alipay suddenly isn't profitable while at the same time the Chinese economy is slowing and regulators are pushing back. What else is going on here? The Case for BABA StockIt's possible these risks are just the price of being a owner of BABA stock. (Or, more accurately, a shareholder in a Cayman Islands-based variable interest entity with a contractual right to Alibaba's profits.) And it's possible that over time, China's financial system will become more open -- and more regulated. Meanwhile, as I wrote this month about iQiyi (NASDAQ:IQ), some investors see the opportunity in China as more than worth the risks.But there are going to be bumps along the way -- one reason why the Alibaba stock price has struggled to rise with any consistency. On its face, ownership of China's e-commerce leader at a reasonable, if not attractive, earnings multiple seems like a slam dunk. But whether it's Alipay, the new listing in Hong Kong, or shareholder rights, there are real concerns about Alibaba stock at the moment. And until that changes, BABA may stay stuck.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy From This Superstar Fund * 7 Stocks to Buy This Summer Earnings Season * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post Alipay is Just Another Point of Contention for Alibaba Stock Investors appeared first on InvestorPlace.