All eyes on Alibaba Group today

If you buy Alibaba shares today, you will buy a piece of North American Island country, and not a piece of the Chinese online retail giant. You will simply buy and own a stake in a variable interest entity registered in the Cayman Island, because Chinese law forbids foreign ownership of strategic assets in China. So, if you buy Alibaba shares today, you would have no influence on management.

alibaba logo

Shares worth about $8 billion is not locked, which means you can sell them right away today. The rest of the IPO`s have a lockup period, which means you have to wait several months before you can sell them.

In addition; if you buy shares in Alibaba today, won`t be able to hedge. Options will listed on September 29. Alibaba Group will be assigned a «China domicile», and therefore shares can`t be included in the S&P 500 Index, which requires a U.S domicile.

As you probably know, Facebook, Twitter and Google are all banned in China, and it was not easy for eBay either. Jack Ma said eBay couldn`t deliver as fast as they could. But what about Alibaba in the west?

Is it gonna be easy for them to build a great express logistic system to deliver fast in the west, where domestic companies are favored over international companies like Alibaba? That`s gonna be interesting in the future, because Alibaba is trying to be a global leader.

In my opinion; Amazon is very expensive, and Alibaba is very cheap. All eyes on Alibaba (BABA) shares today!


Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Leave a comment

Filed under IPO, Stocks

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.