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Review of Alibaba (9988.HK)
07 Jan 2023 (243 views)  

I hold 15,000 shares of Alibaba (9988.HK) at an average cost of $101.65 HKD. My total investment is $260,000 SGD.

At the worse point, I saw a drop of 40% on my holding, giving a loss of $104,000 SGD.

The stock price has just recovered to my cost. The analysts are positive about this stock as it will benefit from the reopening of the China economy (after the covid lockdown) and the listing of Ant Financial. 

However, I am worried about the fundamentals. It has a TTM PE ratio of 135 times and a forward PE ratio of 10.81 times. This implies that the profit will increase by 12 times in the coming year. 

I looked at the financials for the first three quarters of the current financial year. The earnings are still weak. The analysts are projecting strong growth for the financial year started 1 April 2023. 

I sold 5,000 shares last Friday. I will sell the remaining 10,000 shares on Monday. After that, I will have 0 shares in Alibaba. 

Note - I am sharing my personal view. I am not giving financial advice. 

Tan Kin Lian

 


Review of Alibaba (9988.HK)
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I hold 15,000 shares of Alibaba (9988.HK) at an average cost of $101.65 HKD. My total investment is $260,000 SGD.

At the worse point, I saw a drop of 40% on my holding, giving a loss of $104,000 SGD.

The stock price has just recovered to my cost. The analysts are positive about this stock as it will benefit from the reopening of the China economy (after the covid lockdown) and the listing of Ant Financial. 

However, I am worried about the fundamentals. It has a TTM PE ratio of 135 times and a forward PE ratio of 10.81 times. This implies that the profit will increase by 12 times in the coming year. 

I looked at the financials for the first three quarters of the current financial year. The earnings are still weak. The analysts are projecting strong growth for the financial year started 1 April 2023. 

I sold 5,000 shares last Friday. I will sell the remaining 10,000 shares on Monday. After that, I will have 0 shares in Alibaba. 

Note - I am sharing my personal view. I am not giving financial advice. 

Tan Kin Lian