Research Firm Initiates Coverage on Alibaba
JCAP, a global financial research firm, has examined many of the concepts I've been discussing in this blog for the last year and applied some real, "boots on the ground" resources to validate, challenge and examine the Alibaba business model and financial metrics. They've done fascinating, brilliant work. My JCAP Recap video clip on Chinese E-Commerce and Alibaba in particular, also made the front page of the JCAP Research website this week.
Before Alibaba, I can't remember seeing a term like "Gain on the disposal or deemed disposal" of assets. They've also apparently never lost money on these "deemed disposals". So Alibaba can book a gain on an asset that they could have sold if they wanted to, at the price they wish they could have sold it at?...and not disclose any of the details/calculations? ....hmmmmm..
ReplyDeleteBefore Alibaba, I can't remember seeing a term like "Gain on the disposal or deemed disposal" of assets. They've also apparently never lost money on these "deemed disposals". So Alibaba can book a gain on an asset that they could have sold if they wanted to, at the price they wish they could have sold it at?...and not disclose any of the details/calculations? ....hmmmmm..
ReplyDeleteRE: ANT IPO possible change - maybe they can put ANT back in the financials now :-)
ReplyDeletehttp://www.bloomberg.com/news/articles/2016-03-17/a-minor-omission-spells-more-uncertainty-for-chinese-tech-ipos
Thanks Juan. I saw that. In my November 16th, 2015 "I was Talking to an Analyst" post I described why Alibaba would not do an Ant IPO, at least in the US or any other market where they'd have to disclose financial details of the Alibaba/Ant relationship. I also described how they'd be looking for more overseas funding soon in a "cookie cutter bond issue" (The equivalent just happened with the $3 Billion Credit facility). At the time, I also placed a price target on BABA of $7.00. So far I seem to have been correct on two of the three predictions. The third is yet to happen. Markets can be brutal on folks who misjudge these things. Ask Bill Ackman how Valeant worked out for him.
Deletehttp://fortune.com/2016/03/17/investors-shrug-as-chinas-state-press-slams-alibaba-for-fraud/?iid=leftrail
ReplyDeleteThis article also places is a little more emphasis on why Alibaba may have been caught in the crosshairs this year. I wonder what happens if you wake up and find your CEO has been detained by a Chinese communist government?
" he who lives in a house of CARDS should throw no stones" ��
and then today - I think they might be setting us up for the boom. Last year is was all about the "GMV".
ReplyDeleteAlibaba Announces Transaction-Volume Milestone: 3 Trillion Yuan -- 2nd Update
Write to Sarah Nassauer at sarah.nassauer@wsj.com
…."Executive Vice Chairman Joe Tsai said Monday that Alibaba had achieved "unprecedented scale," as the dollar value of transactions on its platforms would make it the sixth largest provincial economy in China. But he acknowledged the e-commerce giant faces significant challenges ahead. Alibaba said it hopes to reach 6 trillion yuan in transaction volume by 2020.
"Growth is meaningless unless it is sustainable," said Mr. Tsai, in a post on Alibaba's news site, noting the company is recruiting quality brands, especially those overseas, to join its shopping platforms. "While GMV is a proxy for scale, our focus on quality and sustainable growth means how we measure success is no longer dependent on a simplistic view of GMV growth."
(END) Dow Jones Newswires
March 21, 2016 08:47 ET (12:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
excellent - thank you.
ReplyDeletehttp://www.valuewalk.com/2016/04/alibaba-group-holding-ltd-baba-jcap/