Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
A second ago Fidelity showed them with an open at $92.5 and a day high of $99+change
Anyone who bought at the open was not happy shortly after. $90 seems like it's being defended hard. Still, I can't believe something that I'd wager most people in the US have never heard of even opened as high as it did. I was expecting initially $75-80 open, if that. It could have gone either way. Long-term, however, I like the idea of a company that has practically a monopoly on e-commerce in China.
I'm letting Softbank do the fighting for me at this time and probably forever. Like you my portfolio is fairly well set currently and I don't have the tools or savvy to mess with IPO's out of my field or comfort range.
I'm letting Softbank do the fighting for meat this time and probably forever. Like you my portfolio is fairly well set currently and I don't have the tools or savvy to mess with IPO's out of my field or comfort range.
Personally, I think the story - you have a company that basically has a near-monopoly over e-commerce in China - remains compelling. Softbank and Yahoo may see some selling in the near-term with a combination of profit taking for people to move to Alibaba itself OR - as has been reported - people shorting Yahoo as a hedge against their Alibaba position as no options for BABA yet exist.
That said, I still think the way to go about that I prefer is Softbank, where you have an ultimately very successful CEO (richest man in Japan at this point, I believe) who is a director in Alibaba. Softbank is also - overall - an interesting sort of venture capital/telecom hybrid.
It will remain a small position for me and a way to participate - even if a little bit - in Alibaba longer-term.
As for something comparable, look at Naspers (which I continue to regret selling when I did), which was an early investor in Tencent. My hope is that - over time - you see something remotely comparable here.
Quite frankly, I'm astonished that Alibaba opened where it did - I was expecting $75-80 for a company that certainly is not a household name in the United States. While I like the story, the IPO could really have gone either way.
"For over a thousand years Roman conquerors returning from the wars enjoyed the honor of triumph, a tumultuous parade. In the procession came trumpeteers, musicians and strange animals from conquered territories, together with carts laden with treasure and captured armaments. The conquerors rode in a triumphal chariot, the dazed prisoners walking in chains before him. Sometimes his children robed in white stood with him in the chariot or rode the trace horses. A slave stood behind the conqueror holding a golden crown and whispering in his ear a warning: that all glory is fleeting." - Gen. George C. Patton
Comments
That said, I still think the way to go about that I prefer is Softbank, where you have an ultimately very successful CEO (richest man in Japan at this point, I believe) who is a director in Alibaba. Softbank is also - overall - an interesting sort of venture capital/telecom hybrid.
It will remain a small position for me and a way to participate - even if a little bit - in Alibaba longer-term.
As for something comparable, look at Naspers (which I continue to regret selling when I did), which was an early investor in Tencent. My hope is that - over time - you see something remotely comparable here.
Quite frankly, I'm astonished that Alibaba opened where it did - I was expecting $75-80 for a company that certainly is not a household name in the United States. While I like the story, the IPO could really have gone either way.
Regards,
Ted
"For over a thousand years Roman conquerors returning from the wars enjoyed the honor of triumph, a tumultuous parade. In the procession came trumpeteers, musicians and strange animals from conquered territories, together with carts laden with treasure and captured armaments. The conquerors rode in a triumphal chariot, the dazed prisoners walking in chains before him. Sometimes his children robed in white stood with him in the chariot or rode the trace horses. A slave stood behind the conqueror holding a golden crown and whispering in his ear a warning: that all glory is fleeting."
- Gen. George C. Patton