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My investment in Alibaba, Baidu
27 May 2022 (561 views)  

I invested a total of HKD 1,862,460 (SGD 323,605) in Alibaba and Baidu. I bought the shares at a price of 43% and 22% lower respectively, compared to the 52 weeks high for these stocks.

Based on the closing price of 26 May, the stock price dropped by a further 37% and 26% respectively from my cost, due to these factors:

a) The uncertainty over the govt control of tech stocks
b) The potential de-listing of the stocks from America due to disputes on audit.
c) The slowdown in China due to the lockdown in April.

I have incurred a loss of SGD 98,944 on these two stocks, or 30% of my cost.

These two stocks rebounded strongly on 27 May, increasing by 12.2% and 14.7% respectively. My loss has reduced to SGD 60,000.

The rebound in price is probably due to optimism that the US and China regulators have overcome their disagreement on the audit issues.

I expect these stock prices to improve further as the drop from the peak has been too sharp and the stock price appeared to be undervalued, compared to tech stocks in America.

Tan Kin Lian






 


My investment in Alibaba, Baidu
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I invested a total of HKD 1,862,460 (SGD 323,605) in Alibaba and Baidu. I bought the shares at a price of 43% and 22% lower respectively, compared to the 52 weeks high for these stocks.

Based on the closing price of 26 May, the stock price dropped by a further 37% and 26% respectively from my cost, due to these factors:

a) The uncertainty over the govt control of tech stocks
b) The potential de-listing of the stocks from America due to disputes on audit.
c) The slowdown in China due to the lockdown in April.

I have incurred a loss of SGD 98,944 on these two stocks, or 30% of my cost.

These two stocks rebounded strongly on 27 May, increasing by 12.2% and 14.7% respectively. My loss has reduced to SGD 60,000.

The rebound in price is probably due to optimism that the US and China regulators have overcome their disagreement on the audit issues.

I expect these stock prices to improve further as the drop from the peak has been too sharp and the stock price appeared to be undervalued, compared to tech stocks in America.

Tan Kin Lian