Get ready for the pain and possible alliances. With the world map indicating the areas with concentrated resources, it is easy to see why these areas are in power today,...
From the initial public offering (IPO) of $68 per share, Alibaba (BABA) shares have increased to over $100. Since that quick rise, the stock has receded to $85. Should this be part of your core investment holdings in 12 months? Is this the next Google for China? There are many reasons to say yes to both. The article by Tomi Kilgore explains four of the main points: China’s ecommerce economy is booming, Alibaba holds a dominant market position, market penetration remains low, and Alibaba’s business model is highly profitable.
This is really sounding more like Google and early Yahoo then some of the Dot-Com casualties in the late 1990’s and early 2000’s. The main argument that I agree with is the overall growth of the market and the firm’s dominance in that market. Think of the beginning of Amazon. It never lost its hold as the leading ecommerce destination. With the influx of new cash for investment, Alibaba will be able to stay with the emerging trends if it can’t produce them internally. Keep watching this new player in the world’s ecommerce footprint.
Article Link: http://www.marketwatch.com/story/alibaba-shares-could-nearly-double-ipo-price-in-a-year-mkm-2014-09-22
Gary Kapanowski – Lean Six Sigma Master Black Belt – Excelsior
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