Like I boldly predicted a couple of years ago when BABA was $300 a share. All the bulls were running in the china house.
What changed over the last couple of years? What led BABA to $58.02 a share today?
Is that the bottom? Definitely no. Enjoy the implosion while it lasts.
It is not a company that will stay at this level for long. Sell it when you could.
https://www.wsj.com/articles/alibaba-stock-hits-record-11602236816
The biggest systemic risk for BABA and other tech companies operating in China is the constant change of government policies. I won’t be surprised if BABA falls to $200, $100 or even $50 levels over the next few years.
Buy me a beer if this works out well for you!
This is what Goldman Sachs estimated a few months back.
I am not a big fan of the 2012 movie, but this is what Andy Xie (former chief Asia economist at Morgan Stanley, now an independent economist) said,
Chinese real estate market is 100 percent overvalued and that the intrinsic value of the Shanghai Composite Index is 2,000 points
He went one step further predicting that China’s stock and real estate markets will decline slightly in the fourth quarter of this year, with a large decline coming in 2012. Xie has been preaching this since last August.
