BABA - Buy Now?

TPD

TPD

the poor dad
Alibaba is down almost $100 from its high 2 months ago. Is now the time to buy or is it too risky?
 
Sneakers

Sneakers

Just sneakin' around....
Other places (Amazon, etc...) are posting all time records high stock prices. My question would be, why are Alibaba stocks lower right now? Is there something more to be concerned about?
 
HypertensiveTiger

HypertensiveTiger

Active Member
Aye, I'd proceed with caution. Alibaba is under enormous pressure from the Chinese government due to anti-trust issues. Would have made a nice short some months ago.

Traditional wisdom might suggest buy it now while it's low, but I'm not sure we as Americans have adequate access to perfect information regarding how this is likely to affect the company long-term

www.aljazeera.com

Alibaba crackdown spurs global concerns, $200bn China tech rout

China’s regulators are investigating alleged monopolistic practices at Jack Ma’s Alibaba.
www.aljazeera.com www.aljazeera.com
 
glhs837

glhs837

Power with Control
Yeah, CCP could take Jack out back and shoot his ass any day, I cant see investing in anything that depends on the goodwill of people who have none.
 
Bird Dog

Bird Dog

Bird Dog
PREMO Member
No dividends
High P/E
Chinese government is not to be trusted
If Ma goes to jail its over
A lot better USA and other Asian stocks to play with

So......no
 
PeoplesElbow

PeoplesElbow

Well-Known Member
Bird Dog said:
No dividends
High P/E
Chinese government is not to be trusted
If Ma goes to jail its over
A lot better USA and other Asian stocks to play with

So......no
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PE is only about 25, which ain't bad, Amazons is about 100 and Teslas is ....1200.

But the important part is the Chinese government is not to be trusted.

The upside is fairly low though IMHO.

If you want into retail I'd look at Michael's or Kroger.
 
HypertensiveTiger

HypertensiveTiger

Active Member
Yea, not sure how much traditionally high P/E values can be used to evaluate equities in a world of near-ZIRP and seemingly perpetual QE. All of the old rules are out the window. Many equities have been trading many multiples higher than the old models would suggest.

As long as the Fed keeps juicing, I'm all in. Zero reason not to be.
 
glhs837

glhs837

Power with Control
This is what happens to the fattest goose in the yard....

Beijing is seeking to shrink Jack Ma’s technology and financial empire and potentially take a larger stake in his businesses, according to Chinese officials and government advisers familiar with the matter, as regulators zero in on the billionaire in a campaign to strengthen oversight of an increasingly influential tech sphere.

Under a restructuring road map that China’s financial regulators laid out this week, financial technology giant Ant Group Co. would return to its roots as an online-payment provider akin to PayPal Holdings Inc., while its more profitable investment and loan businesses would be curtailed.
Click to expand...
 
PeoplesElbow

PeoplesElbow

Well-Known Member
BABA might be a good option play.

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marketrebellion.com marketrebellion.com
 
PeoplesElbow

PeoplesElbow

Well-Known Member
Bird Dog said:
You first.....
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Seriously considering puts, it wouldn't be the first time I lost all the money I spent on options though. That's the good thing about options though, you can make a ton with a relatively small investment.

Stocks are like putting money on red or black, options are like putting that same amount of money on a particular number.
 
glhs837

glhs837

Power with Control
PeoplesElbow said:
Seriously considering puts, it wouldn't be the first time I lost all the money I spent on options though. That's the good thing about options though, you can make a ton with a relatively small investment.

Stocks are like putting money on red or black, options are like putting that same amount of money on a particular number.
Click to expand...

Son was talking to me about put options, too much risk for me. Really needs to be play money for that, at least at me level of knowledge
 
Bird Dog

Bird Dog

Bird Dog
PREMO Member
PeoplesElbow said:
Seriously considering puts, it wouldn't be the first time I lost all the money I spent on options though. That's the good thing about options though, you can make a ton with a relatively small investment.

Stocks are like putting money on red or black, options are like putting that same amount of money on a particular number.
Click to expand...
You first......
 
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