Alibaba? Whats Your Thoughts?

[Pony Boy]

I attended an investment group steak dinner on Monday night with the topic being “Investments in the Global Market”. I have been with this group for over 20 years and they have an excellent track record and the funds created have been very successful. The hot topic for the evening was the Alibaba initial public offering scheduled for sometime this fall and how to prepare for what might be the biggest tech IPO offering ever.

Alibaba IPO could be biggest ever

One of the world's fastest-growing Internet companies finally files its US initial public offering, seeking about $20 billion, reports speculate.

After years of anticipation, Chinese e-commerce giant Alibaba made history on Tuesday when it filed for an IPO that could be the biggest such offering the US has ever seen.

http://www.cnet.com/news/alibaba-files-for-ipo/

http://www.reuters.com/article/2014/...A450VV20140507

The company is expected to eclipse the amount Facebook raised in its IPO -- $16 billion, currently the most for an Internet public offering.

Media reports estimate that the company is seeking between $15 billion and $20 billion, or about a 12 percent stake of the company. If it exceeds the $19.1 billion raised by Visa in 2008, it would mark Alibaba as the largest IPO in US history.

[Zealot]

Strong Buy

[bronco militia]

dick pills or GTFO!

[Kaylore]

I enjoyed Aladdin.

[ludo21]

I enjoyed Aladdin.

I immediately started humming this under my breath when I saw the name.

I work for an independent Broker Dealer and I imagine I will soon be hearing about this from our Rep's.

[ZONA]

Sounds like a good investment but does this help China? I'm not for helping those communists, even if it means me not making any money off it.

[kappys]

I attended an investment group steak dinner on Monday night with the topic being “Investments in the Global Market”. I have been with this group for over 20 years and they have an excellent track record and the funds created have been very successful. The hot topic for the evening was the Alibaba initial public offering scheduled for sometime this fall and how to prepare for what might be the biggest tech IPO offering ever.

Alibaba IPO could be biggest ever

One of the world's fastest-growing Internet companies finally files its US initial public offering, seeking about $20 billion, reports speculate.

After years of anticipation, Chinese e-commerce giant Alibaba made history on Tuesday when it filed for an IPO that could be the biggest such offering the US has ever seen.

http://www.cnet.com/news/alibaba-files-for-ipo/

http://www.reuters.com/article/2014/...A450VV20140507

The company is expected to eclipse the amount Facebook raised in its IPO -- $16 billion, currently the most for an Internet public offering.

Media reports estimate that the company is seeking between $15 billion and $20 billion, or about a 12 percent stake of the company. If it exceeds the $19.1 billion raised by Visa in 2008, it would mark Alibaba as the largest IPO in US history.

I'm going to play the facebook game on this one hoping that its a little overhyped and following a quick run up in price the margin traders will drop their long options and the price will suddenly drop. hopefully that's the moment to grab it, otherwise by the time ordinary folks like myself get in the game it will be too late for short term value. In the long run this company looks like a winner - strong growth in a country that is still growing strongly with incredible potential for revenue generation. I will definitely get some shares regardless to hold just going to wait out the first few days and hope for a price correction in my favor.

[El Minion]

Beware: Alibaba IPO isn’t really selling Alibaba

The problem, however, is that investors buying New York-listed shares in Alibaba won’t actually have title to Taobao, Tmall or any of Alibaba’s Chinese assets.

This is because Chinese law forbids foreigners from owning strategic assets in the country, and Alibaba wouldn’t be able to keep its licenses if, say, a U.S. hedge fund directly bought into the e-commerce leviathan.

To get around this, Alibaba is using a structure known as the “variable-interest entity,” a method already employed by many Chinese tech firms that list in the U.S., such as Baidu Inc.

Basically, the Alibaba stock will buy you a stake in a Cayman Islands-registered entity which is under contract to receive the profit from Alibaba’s lucrative Chinese assets but will not actually own them.

And who will own them? Alibaba founders Jack Ma and Simon Xie, according to a post on the New York Times Dealbook blog.

“Such a structure means that if shareholders in the United States want to enforce their rights, they will have to do so based on contracts between a Cayman Islands entity and a mainland China-based one,” writes Ohio State University professor Steven Davidoff in the Dealbook blog.

None of this is to imply that Ma and Xie plan to rip off investors, pulling the Taobao out from under them, so to speak. The real risk appears to be on the shaky legal foundations of the variable interest entity (VIE) structure.

[Requiem]

Alibaba chocolate wafers from Palestine. DELICIOUS.

[Rabb]

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this is all I can think of now thanks

[rugbythug]

I hate it. As a buyer and seller it sucks.

[Ironlung]

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this is all I can think of now thanks

This! Ali baba and the 40 thieves!

[Mogulseeker]

My first response was "how do I get in on this." Can't really afford it right now, but the company is solid.

It mostly depends on how the equity is valued... and find out their S&P rating - not directly related to equity, but it gives you an idea of how strong their bond payouts will be.

I would have a trusted stockbroker (trusted because these guys work on commission) look at the prospectus. The reason facebook's IPO crashed and burned was that the equity was overvalued.

[BroncosfanGuy]

not sure. but Shariff, he don't like it.

[Mogulseeker]

not sure. but Shariff, he don't like it.

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