Saturday, May 22, 2021

Added: Alibaba


Bought 84 shares of Alibaba at USD211.30 on 21 May.

This is my 2nd USA stock (Maiden USA stock is Crowdstrike bought on 14 May).

Reason for buying:

1) Near to 52w low

Due to the Anti-monopoly probe by China, Alibaba share price have been on the downtrend after it reached its 52w high of USD319.32.

Other China tech giants are affected too. Alibaba is also the first to be handed a fine of USD2.8B by the China regulators

Since this is a one off fine (manageable fine amount too), situation do look better at this moment.

Thus, share price should be near bottom unless there is big move / announcement by the China regulators.  

2) Brands under Alibaba Group

I believe majority of the people living outside China would have heard / use one of their brands before. 

For my BTO renovation, I purchased whole set of Toilet Vanity, Kitchen sink, Rain shower set and etc from Taobao. All are still working fine after 1+yrs of usage (Link 1 & Link 2).

Recently, I also bought Baby cot from Taobao since having good product & Taobao experience previously from BTO renovation.

3) Alibaba is below its 200days MA

As per the article of, "As of this writing, BABA is currently trading well below its 200-day moving average (about 18% below to be precise). Historically, every time BABA has been in this spot it has performed very well in the future. 

Since its IPO, BABA has traded this far below its 200-day moving average only a couple of times, as shown in the chart below by the green circles.

As I show in the table below, every time the stock has been there, buyers of the stock were handsomely rewarded by strong returns over the next 12 or 24 months. The table below shows total return over the next 12 and 24 months, after Alibaba has gone this far below its 200 day moving average.


Read the full article here: Alibaba: The Stock Set To Outperform 

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