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BABA - Alibaba

Discussion in 'Stock Message Boards NYSE, NASDAQ, AMEX' started by bigbear0083, Mar 31, 2016.

  1. bigbear0083

    bigbear0083 Content Manager
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    [​IMG]

    [​IMG]

    Alibaba Group Holding Limited is a Chinese e-commerce company that provides consumer-to-consumer, business-to-consumer and business-to-business sales services via web portals. It also provides electronic payment services, a shopping search engine and data-centric cloud computing services. The group began in 1999 when Jack Ma founded the website Alibaba.com, a business-to-business portal to connect Chinese manufacturers with overseas buyers. In 2012, two of Alibaba's portals handled 1.1 trillion yuan ($170 billion) in sales. Suppliers from other countries are supported (with more stringent checks than for Chinese companies), but the company primarily operates in the People's Republic of China (PRC). At closing time on the date of its initial public offering (IPO), 19 September 2014, Alibaba's market value was US$231 billion. However, the stock has traded down and market cap was about $212 billion at the end of December 2015.

    In September 2013, the company sought an IPO in the United States after a deal could not be reached with Hong Kong regulators. Planning occurred over 12 months before the company's market debut in September 2014, with Reuters Instrument Code "BABA.N". The pricing of the IPO initially raised US$21.8 billion, which later increased to US$25 billion, making it the largest IPO in history. Buyers were actually purchasing shares in a Cayman Islands shell corporation, not in the Alibaba group, as China forbids foreign ownership of its companies.

    Alibaba's consumer-to-consumer portal Taobao, similar to eBay.com, features nearly a billion products and is one of the 20 most-visited websites globally. The Group's websites accounted for over 60% of the parcels delivered in China by March 2013, and 80% of the nation's online sales by September 2014. Alipay, an online payment escrow service, accounts for roughly half of all online payment transactions within China.

    Alibaba is planning to enter India and was in talks with Snapdeal in September 2014.

    Alibaba reported sales of $14.32 billion on China's Singles' Day on 11 November 2015, up 60 percent from 2014.

    Alibaba entered India's e-commerce space with 25% stake in Paytm owner One97.
     
    #1 bigbear0083, Mar 31, 2016
    Last edited: Sep 6, 2016
  2. T0rm3nted

    T0rm3nted Moderator
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    Alibaba-Backed Deals Rekindle $39 Billion China Buyout Debate

    (Bloomberg) -- When it comes to the record $39 billion buyout spree of U.S.-traded Chinese companies, there has been a lot of talk without much action in the past 12 months.

    The debate is heating up now after Alibaba Group Holdings Ltd.-backed companies said last week they’ll join a buyout for Momo Inc., raising the odds that the dating app maker will complete a go-private process that had stalled after it began in June. Online video operator Youku Tudou Inc., which was acquired by Alibaba, and budget hotel chain Homeinns Hotel Group were delisted from U.S. last week.

    While 40 Chinese companies have received offers to delist from American exchanges over the last year, only seven have completed the process. Opinions about where the trend is headed are split. One school of thought is that the stock market rout in China and increasing policy uncertainty have made a local listing less attractive, causing the U.S. go-private deals to fall apart. The other is that the revival of the bid to take Momo private is a sign of renewed interest among Chinese investors to push similar buyouts forward.

    “Despite what may be perceived as headwinds in domestic markets, pending transactions are continuing to make progress,” Ryan Roberts, a Hong Kong-based analyst at MCM Partners, said by e-mail. “As long as there is a valuation arbitrage to exploit between the U.S. and China markets, I expect the trade to remain attractive for the founders and owners who can force a deal through. ”

    The buyouts have primarily targeted U.S.-traded Chinese companies because they’re cheap compared with their mainland peers. A Bloomberg index of American depositary receipts of Chinese companies trades at a median forward price-to-earnings ratio of 16, compared with a multiple of 68 for shares on the Shenzhen Composite Index.

    Investors boosted bets in the U.S. last week that the ADR deals will get done. Shares of the buyout targets last week sold on average for 7 percent less than the offering prices, down from 15 percent before the Alibaba news. That compares with an average discount of 2.6 percent in the 31 completed deals in the past three years. Momo and Renren Inc. trade at about a 20 percent discount to the offering prices, down from more than 50 percent and 30 percent the week before, the biggest spread in the group.

    Juicy Stocks

    “It shows the improving expectations for some of these juicy go-private names,” said Henry Guo, a San Francisco-based analyst at Investment Technology Group, who thinks the valuations for Momo and Renren are at a reasonable level. “They are still considered as high quality companies compared to their counterparts in China. The main concerns are how long these deals will take and what investors will join the buyout. ”

    Time may be running out for the analysts who forecast a mass sprint to wrap up all the unfinished buyout business as investor groups take inspiration from Alibaba’s lead. Takeover bids of Chinese ADRs have taken an average of 252 days to finish, according to data compiled by Bloomberg on completed deals since 2012. As for the 33 pending offers, they have already lingered 216 days since they were announced.

    “I suspect that most of the proposed deals never happen or take so long to happen that they take place at much lower valuations,” David Riedel, president of New York-based Riedel Research Group Inc., said by e-mail.

    Policy Risks

    Momo and Youku may just be outliers because both companies are backed by Alibaba, indicating that “there is not a deep pool of potential investors into these deals,” he said.

    Both sides of the buyout debate agree that the combination of lengthy re-listing processes and increasing policy uncertainty in China may eclipse the outlook for the migration from an American exchange to a domestic one. Youku’s Chairman and Chief Executive Officer Victor Koo said on Wednesday that he is eyeing a local stock sale within three years, according to a China Daily report., a long time in a volatile market where regulation changes frequently.

    The Chinese government has recently gone silent on a plan to introduce a strategic emerging industries board. The much-anticipated exchange that was scheduled for a rollout this year had been expected to carry lower listing requirements and offer a fresh fund-raising venue for technology companies. If that signals the government’s intention to suspend the plans for a tech-friendly bourse, then it would create more uncertainty about how U.S.-listed Chinese companies find a way back to public markets at home.

    “In China, the market and policies just change too fast,” Jun Zhang, who oversees China research at Rosenblatt Securities, said by phone from San Francisco. “There are always ways to go home if you want to. But what you don’t know is whether the long wait is worthwhile.”
     
  3. T0rm3nted

    T0rm3nted Moderator
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    Alibaba to buy controlling stake in Lazada for about $1 billion

    Chinese e-commerce giant Alibaba Group Holding Ltd said on Tuesday it agreed to buy a controlling stake in online retailer Lazada for about $1 billion to expand its platform into Southeast Asia.

    Alibaba would invest about $500 million in newly issued Lazada shares and acquire shares from shareholders of Lazada for a total of about $1 billion.

    Lazada operates in Singapore, Malaysia, Indonesia, the Philippines, Thailand and Vietnam.

    In a separate announcement, Britain's biggest supermarket operator Tesco Plc said it agreed to sell an 8.6 percent stake in Lazada to Alibaba for $129 million.


    LINK - http://www.reuters.com/article/us-lazada-m-a-alibaba-idUSKCN0X90HT
     
  4. T0rm3nted

    T0rm3nted Moderator
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    Tim Seymour said on fast money that he would buy BABA here. Looking at the chart, looks like it could get to $85 pretty easily if it gets through $80.

    upload_2016-4-13_20-56-52.png
     
  5. StockJock-e

    StockJock-e Brew Master
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    Come on $80
     
  6. T0rm3nted

    T0rm3nted Moderator
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    Getting close, will have to keep watching it.
     
  7. StockJock-e

    StockJock-e Brew Master
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    Big volume day today
     
  8. T0rm3nted

    T0rm3nted Moderator
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    Finally broke 80 today, but I want to see it close above before believing in the push to $85
     
  9. StockJock-e

    StockJock-e Brew Master
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    Looking for move to the resistance levels, but this may be the momo it needs to break through!

    [​IMG]
     
  10. T0rm3nted

    T0rm3nted Moderator
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    Nice multiple top you got going on up there at $85. The 50MA is about to crossover the 200MA as well...

    upload_2016-4-20_15-5-58.png
     
  11. T0rm3nted

    T0rm3nted Moderator
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    50MA just crossed over 200MA today. Couldn't hold above $80 last week when it closed at $81.22.
     
  12. fidelgeorge

    fidelgeorge Well-Known Member

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    As noted a few days ago, price failed to hold above $80 and now crossed 21dma where some bad pundits watch closely. Bears gain momentum
     
  13. T0rm3nted

    T0rm3nted Moderator
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    Sitting at some recent support levels right now, and with the recent 50MA crossover of the 200MA, this one could start to head back up towards $80, and then maybe $85.

    upload_2016-4-27_14-36-33.png
     
  14. T0rm3nted

    T0rm3nted Moderator
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    Reported before open today (5/5/16)
    Earnings: Revenue $24.2B yuan
    EstimateS: Revenue $23.22B yuan

    Up 4.51% in pre-market
     
  15. StockJock-e

    StockJock-e Brew Master
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    Tim still liking it?

    I shall have to tweet him! ;)
     
  16. StockJock-e

    StockJock-e Brew Master
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    That previous resistance held like a champ

    [​IMG]
     
  17. T0rm3nted

    T0rm3nted Moderator
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    Unless I'm missing something, I'd assume he still does since it's sitting almost exactly where it was back when I posted that pre-market today.
     
  18. fidelgeorge

    fidelgeorge Well-Known Member

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    $BABA looks good here but it needs to close above $80.40 level on weekly basis
    baba.png
     
    Onepoint272 likes this.
  19. LloydWCoutee

    LloydWCoutee Active Member

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    $BABA is a BUY with 20.7% upside to current price of $79.39 based on averages of all analyst ratings/targets according to MW.
     
  20. fidelgeorge

    fidelgeorge Well-Known Member

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    Finally out of the cage and next overhead resistance $85 as per the SCT predicts.
     

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