Libuda
: Seeks to Sell Stake in Chinese Technology Startup
Alibaba Seeks to Sell Stake in Chinese Technology Startup
Alibaba is shopping its stake in company in a deal that could be valued at $1 billion
By Gillian Wong And Rick Carew
Nov. 22, 2015 2:44 a.m. ET
BEIJING?E-commerce company Alibaba Group Holding Ltd. is looking to sell its stake in China?s leading online provider of movie ticketing, restaurant bookings and other on-demand services as it builds a competing platform of its own,.
sieht es charttechnisch recht gut aus für weiter steigende Kurse, über 86,5 USD dürfte sich nun doch (zumindest charttechnisch) reichlich Potential nach oben ergeben mit dem dann bestätigten neuen Aufwärtstrend seit Anfang Oktober.
Libuda
: We added to Alibaba (NYSE:BABA), ............
IBD: Did you do a lot of buying from the bargain bin this summer during the downturn?
Hamzaogullari: Yes, we added in the last quarter to five positions in total. We added to Alibaba (NYSE:BABA), Qualcomm (NASDAQ:QCOM), Procter & Gamble (NYSE:PG), Coca Cola (NYSE:KO) and to Schlumberger (NYSE:SLB).
dann wäre eigentlich das Limit der Sky, aber bekanntlich sind ja Prognosen deshalb so schwierig, weil sie in die Zukunft gerichtet sind ? und das gilt sicher auch für erwartete KGV von nur 3,8 für 2017.
Even though more stability means more modest growth, investors can find fast growing companies in China like Alibaba, perhaps the best emerging market stock to buy for next year. The company is the embodiment of China's move to an economy more geared towards internal consumption. It has altered how Chinese consumers buy and sell goods, aggregating China's population into a colossal, easier-to-access market. There are several catalysts that could drive Alibaba's stock price higher next year. The company is making considerable progress in monetizing its mobile offering, which should drive revenue higher in successive quarters, and it's also investing in analytics and logistics with its $4.6 billion injection into electronics retailer Suning.
Libuda
: A discounted cash-flow process is your best friend
Not only does it allow you to identify the substance of a company?s balance sheet, what it owns (similar to what you have in your own savings account less all debt), but it also encourages a focus on the future free cash flow stream of the entity (much like your salary after expenses, for example). Intrinsic value estimation provides the backbone behind the conviction that an investor gains in either sticking with an idea or throwing in the cards. You can perform discounted cash flow analysis, too. Let?s walk through a few examples to help explain this concept. In mid-September, shares of Alibaba (BABA) had been in a tailspin, with investors growing concerned about the health of the Chinese economy and the impact on consumer spending. Relatively cautious comments by management also served to punish the Chinese e-commerce giant?s shares, all the way down to the high-$50s per share. It wasn?t looking good for shareholders. But while others were calling for the company to fall another 50% from depressed levels, those that applied sound fundamental analysis backed by a discounted cash flow process were able to shrug such concerns off. In mid-September, Valuentum addressed ?The Puzzling Attack on Alibaba,? walking through five distinct reasons why Alibaba shares would be resilient:
1.§Alibaba is significantly free cash flow positive.
2.§Alibaba?s valuation is not stretched.
3.§Why no long-term focus?
4.§Why is precision important?
5.§Businesses are their future free cash flow streams. From the time a large publisher ran a negative article on Alibaba in mid-September, shares have rallied 30%+, and we point to the conviction gained by employing a discounted cash-flow process as to why we weren?t spooked at all. Though no stock is a perpetual ?buy? and we could look to remove shares of Alibaba from the Best Ideas Newsletter portfolio in the future, we continue to value the company north of $100 per share. Investing is not about precision within a discounted cash flow process ? it?s about identifying large mispricings, considering companies that are trading at 50 cents on the dollar, for example.