Why you should buy BABA (9988)?
Many Western analysts recommend ‘sell’ simply because they do not know how China run the business and country. I am not referring politics here.
BABA PE ratio is now just 15.8! . For big growth stock with 15.8, is it really cheap? If you cant see it, may be you are blind and ignorant. What's Amazon's? 66! That is 4 time cheaper than AMZN. BABA growth of at least 20% is still sustainable and recent profit drop is simply because of their big investment in other businesses.
Will China’s economy become the biggest in the world in 10 years’ time? Why not!. If that is the case, will CCP kills the golden goose. China is not 100% communism any more but a combination of capitalism, socialism and communism. Go and do your own research. I dont need to convince you.
The Plot thickens as the West see it but to me, it is so clear - China’s new regulation for the big companies are real good for the consumers, nation and companies in the long term though short term pain is unavoidable. Delisting (in a way is good as long as it done in an orderly manner, or preventing more new companies to list in US) ) from US is preparing for Shanghai (and Hong Kong Stock Exchange) to become bigger and eventually become the No 1
International financial capital 0 Guesstimate is within 15 years
So, go and chase the dragon all the way down. Don’t worry, dragon will rise up and fire-breathe again with power and strength. Note: downside is 10-20% and upside is 100%-200%. within the next 3 years? Would you invest?