3 ms·
Great time to accumulate $BABA.
by srib 5y ago
Great time to accumulate $BABA.
- Someone1234 5y agoMaybe. Depends on if you agree/disagree with the wider market on the inherent problems with BABA and more specifically the relative insecurity/danger of Chinese government intervention. I previously held BABA. I exited at roughly break-even. Furthermore, I won't re-enter for the same reason I exited, the Chinese government can and have ruined Chinese-born companies at the flick of a pen. I think BABA has a good business. If the Chinese government leaves it alone it would be a great investment, but the more influential BABA is the less likely that seems. PS - Plus do the risks and gains actually balance? The risk could be as much as your entire investment, and the returns are far lower than that.
- Scoundreller 5y agoAnd $BABA is a “variable interest entity” if you’re buying it as an American. You don’t really own any of the operating corp if you buy its shares, so you have both regulatory risk and contract default risk with ??? recourse. https://www.wsj.com/articles/u-s-and-chinese-regulators-are-in-a-bind-over-a-three-letter-acronym-11632999033 https://www.wsj.com/articles/u-s-and-chinese-regulators-are-... https://en.m.wikipedia.org/wiki/Variable_interest_entity https://en.m.wikipedia.org/wiki/Variable_interest_entity
- chrisjc 5y agoNot too familiar with it, and pretty concerned about the riskiness of owning it, but do you know if BABA is a Cayman Structure?