RAJAH88
2024-05-13
$Alibaba(09988)$  


An easy buy. My analysis are as follows;

1. Alibaba is undervalue. There is no question about this.

2. Following on Point 1, one must then evaluate the nature of Alibaba business

3. The E-commerce continue to be strong. While there are competitors but it is unlikely to replace Toabao and Tmall. Take for example Douyin and Tik Tok, while there is a strong e-commerce Element, I doubt if it will really fly. who will waste time watching live streaming. If you have financial power, you probably just buy it directly in TMall rather than wasting time watching live streaming. Similarly, PDD is just a dollar shop business. Nothing substantial and just a hype.


4. Ali next potential is in Alicloud and Artificial intelligence. If it do well in this segment, it will just take off.


5. I believe that to See if the stock is a buy, ask yourself, if you have the money to wholly owned and buy entire alibaba, will you do it given its free cash flow. For me that is a 100% yes and hence I am convinced to buy even it hit $80 or $85.


New Liquidity? Are You Bullish on China Stock Rally During CNY?
At today’s meeting, China announced a new policy stating large state-owned insurance companies are required to allocate 30% of their new premiums each year to A-share investments starting in 2025. Historically, Hong Kong and A-shares tend to perform well in January, during the Chinese New Year period. ------------------- Does this signify new liquidity for the stock market? Is it a positive signal or not? Should investors hold on for more gains or take profits now? Which Chinese stock are you most optimistic about?
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