Online:
Visits:
Stories:
Profile image
By silveristhenew (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

BABA Battered To Record Lows

Wednesday, August 12, 2015 7:18
% of readers think this story is Fact. Add your two cents.

(Before It's News)

Alibaba – for months incessantly discussed as the must own stock of the decade – just hit fresh all-time lows. Down over 5% in the pre-market after missing revenue estimates and seeing growth at the slowest in three years, it appears things are not soft-landing in China after all…

But here is CNBC from Nov 2014 to explain why this is a great opportunity to buy the dip…

“I think this is a growth story. I don't think $110, $120—I don't think that's the top,” Najarian said. “I think the stock can get to $150.”

Ritholz Wealth Management CEO Josh Brown said he played the sector via Chinese Internet exchange-traded fund KWEB, with Alibaba accounting for 10 percent its holdings.

“The thing to keep in mind about China, they did not spend the last 30 years building out Wal-Marts and Targets everywhere. So, now that people have more disposable income, they want to spend money on things like Singles' Day, for example,” he said. “They don't have a million options in stores down the street. They're increasingly using Alibaba.”

Brown said Alibaba's fortunes are tied to the growth of a middle class in China.

“There are a multitude of ways to play it. There have been a lot of big winners in the space. And there will be going forward,” he said. “BABA is the best going forward right now. May not be the case three months, six months, a year from now because it's not just what you own, it's at what price you buy it. There are cheaper Chinese Internet names that I think will benefit as well.”

TheStreet CIO Stephanie Link noted that with a valuation at 49 times earnings, Alibaba stock was “not cheap.”

“I don't know what you want to go full-bore in today,” she said. “Maybe you can see a little of the volatility and buy on a dip if you get it.”

Joe Terranova of Virtus Investment Partners said institutional money was going to become a factor.

“Now you hear the fundamental earnings story, and those like myself who sat back passively and didn't trust the company, they're going to come in,” he said. “You're going to see the institutional mutual fund side own this company in 2014. I expect it to be a very strong winner, and it could easily Pete's target.”

*  *  *

Well it is cheap-er now!




Source: http://silveristhenew.com/2015/08/12/baba-battered-to-record-lows/

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.