𝘼𝙡𝙞𝙗𝙖𝙗𝙖 𝙞𝙨 𝙡𝙤𝙨𝙞𝙣𝙜 𝙖 𝙡𝙤𝙩 𝙤𝙛 𝙢𝙤𝙣𝙚𝙮!!
Well, not really.
Income from operations was RMB 25.137, which is $29.124 million, 68% higher than the previous year. Revenue just increased by 3%, year over year.
But if you check just “net income,” you will see some losses. But it is due to the accounting standards which make you recognize your participation in other companies at market price. And as Chinese shares have kept falling, you have to recognize the loss.
But the most important thing is the operating business, which has improved margins considerably (it was a big concern some months ago). If you saw the video I made ( etoro.tw/3OlcBLV ), the operating margin is better than my best scenario, and the revenue is somewhat in the middle between the best scenario and the second scenario. So, if we just value the operating business, the stock should double from now. All the rest we are getting for free.
𝙊𝙣𝙘𝙚 𝙖𝙜𝙖𝙞𝙣, 𝙞𝙩 𝙞𝙨 𝙣𝙤𝙩 𝙖 𝙢𝙖𝙩𝙩𝙚𝙧 𝙤𝙛 𝙫𝙖𝙡𝙪𝙖𝙩𝙞𝙤𝙣.
And you would be right in answering the above. However, clouds are fading, and good times seem to be ahead. Cooperation between China and the US (a major concern) is improving, and the crackdown on Chinese companies has ended (and even Alibaba’s management has pointed it out). More here: etoro.tw/3DWEIfL
𝘼𝙣𝙙 𝙩𝙝𝙚𝙧𝙚’𝙨 𝙢𝙤𝙧𝙚: 𝙗𝙪𝙮𝙗𝙖𝙘𝙠𝙨!
At today’s prices, Alibaba could buy back 10% of the company with the current market cap. So we have two scenarios:
1.- The price of Alibaba stays depressed, so just buyback shares, we could have a 10% annual return, considering the buyback program and the free cash flow generation.
2.- Mr. Market recognizes the value of the stock, and it doubles instantly.
Both seem two good scenarios! Don’t you think?
🏆ɪғ ʏᴏᴜ ᴡᴀɴᴛ ᴛᴏ ɢᴇᴛ ᴇxᴘᴏsᴜʀᴇ ᴛᴏ ᴄʜɪɴᴀ, ᴀs ɪᴛ ʜᴀs ᴛʀᴇᴍᴇɴᴅᴏᴜs ᴜᴘsɪᴅᴇ ᴘᴏᴛᴇɴᴛɪᴀʟ, ʏᴏᴜ ᴍᴀʏ ᴄᴏɴsɪᴅᴇʀ ᴀᴅᴅɪɴɢ ᴍʏ ᴀᴄᴄᴏᴜɴᴛ ᴛᴏ ʏᴏᴜʀ ᴘᴏʀᴛғᴏʟɪᴏ. 🏆
𝘾𝙧𝙞𝙨𝙩𝙞𝙖̀ 𝘾𝙖𝙡𝙡𝙚 𝙈𝙚𝙧𝙘𝙖𝙙𝙤,
𝙊𝙛𝙛𝙞𝙘𝙞𝙖𝙡 𝙚𝙏𝙤𝙧𝙤 𝙑𝙖𝙡𝙪𝙚 𝙄𝙣𝙫𝙚𝙨𝙩𝙤𝙧
$BABA (Alibaba-ADR)$9988.HK (Alibaba Group Holding Ltd (Hong Kong))$SPX500$BTC... Show More
Alibaba is my largest position and is responsible for 25% of my losses for this year.
I remain confident that it will become a top performer, and appreciate your words of confidence.
I think it will help me enjoy my retirement. Just hope I have the balls to hold on to it for the long term and don't... Show More