• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

October 1, 2010 - Double Click on Alibaba

Diary

Featured Trades: (ALIBABA)


2) Double Click on Alibaba. Given my bullish take on China in my September 28th letter, I'm going to be putting a few more single names out there. Jim Trippon's China Stock Market Digest published a recommendation that caught my eye (click here for my Hedge Fund Radio interview with Jim).

Alibaba (ALBCF) (HKG 1688) is the Middle Kingdom's preeminent e-commerce company, and far and away dominates this fastest growing sector of the economy. In the first half of this year, e-commerce sales in China doubled to $31 billion, and the full year figure is expected to grow to $64.5 billion. So far this year, 36 million have joined the Internet there, bringing the total to 420 million.

Electronics accounted for 44.2% of sales, followed by clothing (17.4%), and jewelry (5.8%). Despite this blistering growth, Internet market penetration stands at only 31.8%, among the lowest in Asia. Deutsche Bank predicts the total market will grow to $220 billion by 2014, while the number of users soars to a mind numbing 812 million, nearly triple the US population! That implies an explosive? 700% growth of the market over a four year period.

Alibaba's profits jumped by 46% in Q2. The stock is not cheap with a PE multiple of 55, but it is almost the only game in town. Despite the amazing outlook for the online industry in China, the stock has fallen for most of 2010, presenting investors with a reasonable entry point. Here is not a bad place to start scaling in. As the ADR's traded on the pink sheets are illiquid, better to buy the Hong Kong traded stock.

Alibaba1.gif


ChinaECom1.jpg


ChinaInternet1.jpg

More Than All the Clicks in China

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2010-10-01 01:50:412010-10-01 01:50:41October 1, 2010 - Double Click on Alibaba

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: October 1, 2010 - Gold is Now At the Deep End of the Pool Link to: October 1, 2010 - Gold is Now At the Deep End of the Pool October 1, 2010 - Gold is Now At the Deep End of the Pool Link to: October 5, 2010 - Welcome to the Limit Down Move Link to: October 5, 2010 - Welcome to the Limit Down Move October 5, 2010 - Welcome to the Limit Down Move
Scroll to top