Previously, I was recommending Alibaba as good stock to invest. It has potential to move up at least 50% in short term in my view. I have accumulated a huge positions before the HK IPO in anticipation of demand surge after the US-China trade war ended.
Below was the recap for what I had posted in Dec 2019.
The IPO (Investment Profit Overdrive)
Alibaba Group announced to raise US$12.9 billion from its landmark Hong Kong listing and is set to price its shares at HK$176 (S$30.62) each, start trading on 26 Nov 2019. Shares of Chinese e-commerce giant Alibaba saw a strong debut in Hong Kong surged more than 6% at debut, intraday high of HKD189.50.
Since the HK IPO listing, BABA share surge almost daily hitting it 52 week high within 2 weeks. The cooker's lit had finally popped open, letting the steam out. The truce reached in the China-US trade war back in Dec-14 had bring back much needed boost for this Chinese stock. Turning a "flight to safety" trade, avoid all "Chinese stock" event into "risk on" overdrive.
Alibaba currently trading at USD215 after 1 month since IPO. Up > 20% since my last bought. Hey, I'm not popping my champagne yet and not selling my stake. I think the surge is not over yet, there are few more events may add more "boost" to the share price. I'm looking at next 2 major events that will be significantly impact the valuation of the stock price.
- Inclusion into Shanghai Stock Connect - this inclusion will open a floodgate of 100 millions investors in China eligible to invest in this HK biggest IPO stock. This will help boost the share price valuation.
- Inclusion into the major world Index - Due to its capitalization size, it will be include into major index such as Hang Seng Index and MSCI China etc. This will drive up the buy side demands from index fund managers' portfolio that require mirroring the index performance.
Click Link below for the full article on this:
My Trade update Feb 2020
The stock price peaked at $230 on Jan-13. I started to take some profit and sold out by Feb-2020 due to the COVID-19 situation in Wuhan, China. My initial plan was to hold this investment for long term. However, I felt that the world economy was overheated and this COVID-19 pandemic could triggered a market correction and even world recession. So I decided to cut my stock holding along with others counters.
In all, my investment return for Alibaba was about 25% gains over 3 months holding period which provide me a handsome profit of $33,148 with average selling price of $220 per share.
This would be among the best investment decisions I ever make and best ROI in the record for 2020. Since 2018, this counter had been my favorite and I never regret looting this "Treasure Cave" over again and again.
-WILLIAM CHENG
Please click the links below for more interesting reads:
Links MANULIFE US REIT....... COVID-19 Crisis
Links FORMULA for successful stock picking
Links Investment Psychology....Investor's worst enemy
Links ALIBABA HK IPO..... (Investment Profit Overdrive)
Links Boom and Bust in 2019 revealed
Links FORMULA for successful stock picking
Links Investment Psychology....Investor's worst enemy
Links ALIBABA HK IPO..... (Investment Profit Overdrive)
Links Boom and Bust in 2019 revealed
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