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- Manlobbi
Stocks A to Z / Stocks C / Charter Communications (CHTR)
No. of Recommendations: 3
Revenue and adjusted earnings came in as expected, but the big news is that Baba is not spinning off the cloud computing unit at this time. The market sold it off heavily, down 8-9% so far. Other big news is a 1.3% annual dividend.
I actually prefer to keep the cloud unit inside BABA at the moment, wasn't looking forward to tracking all these different stocks I was going to get. And I'm fine with getting a dividend.
International revenue showed robust growth.
The big key with Baba is whether you can trust the ownership interest in the company represented by each BABA ADR, or will those owners get screwed while the Chinese owners get rich.
The laws and enforceability of ownership rights is the crux of the issue. Otherwise I'm very, very bullish on BABA as a company and the value of BABA relative to price right now. It's a gamble though, which way will the winds of the Chinese government (Xi) blow?
No. of Recommendations: 2
I agree, it does not make a big difference if the cloud division is spun off or not. More important, it does not grow.
I don't know what made Mr. Market selling BABA today, perhaps it is the perception that a growth stock should not pay a dividend? It can be seen as an admission that there is not much future growth left (apart from the international unit, which seems to do great).
However, BABA looks very cheap. Don't forget the 1/3 share of ANT, which is probably worth 25bn$.
No. of Recommendations: 1
No. of Recommendations: 1
Results pretty good. I wonder if the drop is because of this. https://www.reuters.com/markets/deals/jack-mas-fam...
"
Chinese billionaire Jack Ma's family trust is set to sell 10 million American Depository Shares of Alibaba Group Holdings (9988.HK), for about $871 million, the ecommerce company said in regulatory filings.
The sale will be done on Nov. 21...
"
Can't be helping, lol. But, while that seems like a lot of selling pressure, there are a bazillion of those shares out there trading every day and today alone volume was 62.9m shares. Granted that was the highest volume in the last 6 months, but it illustrates how 10m sold over a week isn't an overwhelming amount.
No. of Recommendations: 0
BABA bagholder collective,😂
I jest,needs a 5 year view IMO.
No. of Recommendations: 2
I agree, it does not make a big difference if the cloud division is spun off or not. More important, it does not grow.
I don't know what made Mr. Market selling BABA today, perhaps it is the perception that a growth stock should not pay a dividend? It can be seen as an admission that there is not much future growth left (apart from the international unit, which seems to do great).
However, BABA looks very cheap. Don't forget the 1/3 share of ANT, which is probably worth 25bn$.
Thanks for your comments. The cloud devision is in a lull in growth, with only 2%, IIRC. But, heck, I'd say it's amazing they are growing at all with all the economic problems China is facing, combined with the restrictions the US has put on their operations and products.
I think the restrictions will slow them down some, but it won't be too long before China's chip industry catches up, I bet, or at minimum it will improve rapidly going forward. And even if there's a lull in domestic growth now, I expect massive future growth of Chinese cloud services.
There is a lot of upside for Alibaba. I'm glad to get a 1.3% dividend and there have been tons of great growth companies over the years that have paid a dividend, i.e. Walmart, Coke, etc ... It's a good kind of problem to have: to have so much cash you can't re-invest it all, even while you attack a giant growth market opportunity with truly enormous investment.
No. of Recommendations: 0
BABA bagholder collective,😂
I jest,needs a 5 year view IMO.
Lulz :)
Yeah, 5 year view looks pretty rock solid as long as you're sure the BABA ADR/stock will accurately track the value of the company Alibaba has, or will assets be siphoned off for Chinese owners?
No. of Recommendations: 0
I don't think so, this week shows the US and Chinese economy are interlinked. I bought some more today.
No. of Recommendations: 0
When the former boss of the company sells a large block of his shares at a depressed price, this is not exactly a confidence building measure, I agree.
A few hours ago he made a statement via the South China Morning Post (Hong Kong) - Paywall:
https://www.scmp.com/business/companies/article/32...Exclusive - Jack Ma’s office says he remains ‘very positive’ about Alibaba and clarifies that he will continue to hold the tech giant’s shares
Shares in Alibaba, the second-heaviest member on the Hang Seng Index with a 7.6 per cent weighting, fell by almost 10 per cent in Hong Kong
Jack Ma, who retired as Alibaba chairman in 2019, remains a major shareholder through his family trust
...
The phased sale is part of a long-standing and long term “preset conditional plan to do a partial sell-down for the future that was adopted in August and it won’t lead to any reduction of [Ma’s] holding of shares for now” and “not a single share has been sold”, according to Ma’s office. “We believe the current stock price is far below its fair value.”
No. of Recommendations: 0
Should be heavily buying back shares though.
