Jack Ma, Executive Chairman of Alibaba Group Holding Inc.
You may
recall several financial blogs back when I told you that one of my friends
wanted to know if I was going to buy Alibaba (Stock Symbol: BABA) when it came
to the market on an IPO. She bought the stock at $90.00 per share. Then the stock went up to $99.00 before the
market corrected and the stock fell to about $86.00.
As I told
you before, I usually do not buy stock for my account but I do buy stock for my
friends accounts. October is the time that I divest accounts and at the end of
October, I buy stock in anticipation of the "Year End Rally." On October
30th and 31st, I started buying Alibaba stock at $99.50. The stock hit a yearly high
of $120.00 and a low of $82.81 per share.
As of the date of writing this blog, the price is $115.10.
Why did I start buying this stock? I did because
Alibaba is "In Favor" with investors.
I will sell this stock when my friends need the money or when Alibaba
falls "Out of Favor" with
investors.
Why is it
"In Favor?"
Alibaba.com mainly links
Chinese suppliers to foreign buyers. Alipay, a privately owned affiliate that’s
not part of the listed Alibaba Group, functions as the equivalent of PayPal in
processing 75 percent of the group’s transactions.
Alibaba’s customers trade
anything and everything, from silkworms to Boeing 747s. The family of Ma Yu, a
Starbucks barista in Ma’s hometown, likes buying cooking oil, sacks of rice and
toilet paper.
“It’s even cheaper than
supermarkets, and you get way more choice according to experts.
Some $248 billion flowed
through Alibaba’s retail portals last year, equal to 2.6 percent of China’s
$9.38 trillion gross domestic product.
On Nov. 11, 2013, the
Chinese twist on Valentine’s Day known as Singles Day, Alibaba logged $5.75
billion in transactions. By contrast, Cyber Monday 2013, the biggest U.S.
e-commerce day, rang up less than $2 billion.
For this year’s Singles
Day, Alibaba is becoming even more ambitious, staging the promotion globally.
It’s targeting $8.2 billion in transaction volume, according to Bloomberg
Intelligence.
Alibaba is making money:
Net profit tripled to $3.7 billion in the year ended on March 31. While net
income fell 39 percent in the three months ended Sept. 30, in part as a result
of the cost of integrating new businesses, revenue jumped 54 percent during the
quarter -- beating analysts’ estimates.
“The growth potential of
Internet companies in China is many multiples greater than in the U.S.,” says Shane Oliver, who
helps manage $131 billion at AMP Capital Investors in Sydney. “Businesses which
can take advantage of that, such as Alibaba, seem incredibly attractive.” In
line with AMP policy, Oliver declined to say whether his firm bought the stock.
Institutional Investors
BABA stock was so popular among institutional
investors that the two major IPO ETFs fast-tracked it for inclusion in their funds well
ahead of their usual considerations. The Renaissance IPO ETF (IPO) added
Alibaba stock to its fund after five days of trading. The bigger First Trust
US IPO Index Fund ETF (FPX) added
Alibaba stock on Sept. 19, its first day of trading, because it happened to
coincide with the date of its quarterly rebalancing. Normally, FPX only adds stocks that have traded for at least seven days.
You get a technical analysis on this stock by clicking on the picture. If that does not work for you, click on the link.
https://www.youtube.com/watch?v=UpGHCsF9NLI
You get a technical analysis on this stock by clicking on the picture. If that does not work for you, click on the link.
https://www.youtube.com/watch?v=UpGHCsF9NLI
Alibaba Group Holding Ltd (BABA) Stock Chart Technical Analysis for 11-14-14
If you want other technical analysis on other stocks, click on the link below.
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