Alibaba Frenzy

[M Paquette]

Why name this company after an Arabian Thief? Seems like an incredibly bad business move. People will make that subconscious connection. And turn away.

In the story, Ali Baba is the poor woodcutter who discovers the cave holding the cache of the 40 theives. Hilarity ensues...


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[Disappointed]

Received 100 shares at IPO price from Fidelity. Requested 1000 shares.



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[kcowan]

Excuse my ignorance. Are these ADRs traded in NY? If so, are there any special considerations for a Chinese company?

 

[Pscott2019]

I requested 100 in two accounts at Fido. I have only been able to successfully get the lame IPO's from Fido. I probably do not have enough assets at Fido to get allocations for the popular IPO's. In 98, 99, 00 I had a good network to get IPO's but that has long ended.
I suspect we are near the top of this market if I am chasing IPO's again.


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[eta2020]

Excuse my ignorance. Are these ADRs traded in NY? If so, are there any special considerations for a Chinese company?

I think you are asking question to which you already know the answer

Alibaba is Chinese, but is incorporated in the Cayman Islands and will list on U.S. markets -- an unusual setup that can make an investor's head spin. China has prohibitions on foreign ownership, which means U.S. investors won't actually own the company's Chinese assets. Instead, investors will own a Cayman Islands company called Alibaba Group Holding Limited.

This carries some extra risks....

 

[clifp]

I think you are asking question to which you already know the answer

Alibaba is Chinese, but is incorporated in the Cayman Islands and will list on U.S. markets -- an unusual setup that can make an investor's head spin. China has prohibitions on foreign ownership, which means U.S. investors won't actually own the company's Chinese assets. Instead, investors will own a Cayman Islands company called Alibaba Group Holding Limited.

This carries some extra risks....

I just heard about this the day of the IPO very unusual and not in a good way. I mentioned one of the factoid that I read in Berstein's recent book is that 50 richest Politburo in China are worth $100 billion vs $1.6 for the 50 wealthiest Congress members. There is a disturbing lack of transparency in Chinese companies, that coupled with the Kelptocracy makes me really hesitant to invest heavily China despite my fascination for the place.

 

[Totoro]

This is one of the more riskier IPOs I've seen in a while. Apparently the ownership structure isn't even legally tested in China.

Foreign company (holding) has a contract with Alibaba (china) to receive all profits. The foreign company is what IPO'd.

Wouldn't touch this with even gambling money. Casino odds are better and more transparent.

I am happy though that it goes to market. Just means I can pickup shares of other companies cheaper as capital gets routed their way.

 

[Jack_Pine]

Alibaba is described and Amazon + Ebay and a little Google tossed in for good measure.

The difference being: That 50% of Alibabas offerings (at any given time) are non-authentic/non-licensed goods (copies). I have seen this reported a few places. Seems to me they are going to have to fix that to compete with the other big boys.

 

[sheehs1]

I think you are asking question to which you already know the answer

Alibaba is Chinese, but is incorporated in the Cayman Islands and will list on U.S. markets -- an unusual setup that can make an investor's head spin. China has prohibitions on foreign ownership, which means U.S. investors won't actually own the company's Chinese assets. Instead, investors will own a Cayman Islands company called Alibaba Group Holding Limited.

This carries some extra risks....

Read about that too. Made me shy away. Nothing to prevent the Chinese government from taking ownership of some of the assets, reducing the money that goes to the Holding Company.

 

[easysurfer]

The difference being: That 50% of Alibabas offerings (at any given time) are non-authentic/non-licensed goods (copies). I have seen this reported a few places. Seems to me they are going to have to fix that to compete with the other big boys.

Out of curiosity I took a peek at their website. No way is it as polished as Amazon.

Manufacturers, Suppliers, Exporters & Importers from the world's largest online B2B marketplace-Alibaba.com