Here's a link to the Alibaba IPO Roadshow Presentation,
https://www.youtube.com/watch?v=sa9R2SqZsHM
I highly recommend watching it. To save time, watch it on Chrome at 2x speed.
Alibaba Raises $21.8B in Initial Public Offering
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Re: Alibaba Raises $21.8B in Initial Public Offering
#22Here's a link to the Alibaba IPO Roadshow Presentation, https://www.youtube.com/watch?v=sa9R2SqZsHM I highly recommend watching it. To save time, watch it on Chrome at 2x speed.
Sorry, how do you watch it at 2x speed on in Chrome?
Re: Alibaba Raises $21.8B in Initial Public Offering
#23Here's a link to the Alibaba IPO Roadshow Presentation, https://www.youtube.com/watch?v=sa9R2SqZsHM I highly recommend watching it. To save time, watch it on Chrome at 2x speed.
Sorry, how do you watch it at 2x speed on in Chrome?
1. Enable HTML5 at http://youtube.com/html5
2. Click the gear icon in the bottom right of the player and change selection in the "Speed" dropdown
Re: Alibaba Raises $21.8B in Initial Public Offering
#24Here's a link to the Alibaba IPO Roadshow Presentation, https://www.youtube.com/watch?v=sa9R2SqZsHM I highly recommend watching it. To save time, watch it on Chrome at 2x speed.
Sorry, how do you watch it at 2x speed on in Chrome?
request HTML 5 player through Youtube.
https://www.youtube.com/html5?gl=BE
P.S. You could easily google this!
Re: Alibaba Raises $21.8B in Initial Public Offering
#25Alibaba going for a higher selling price just makes the continued undervaluing of Yahoo itself increasingly hilarious. At some point, I would think someone will want to buy them for all of this free money they have sitting around. YHOO market cap : 42.3bn + liabilities : 3.7bn = 46bn (to own outright) Meanwhile: Cash on hand = 1.1bn + Other assets = 15.3bn + Cash from Alibaba sale = 8.3bn + Value of remaining Alibaba…
This has been covered ad nauseum elsewhere in the financial press, but you're assuming Yahoo pays zero corporate taxes on its sale of Alibaba shares. That's not how the world works. You need to deduct something like 40% from the value of the "Cash from Alibaba sale" and "Value of remaining Alibaba stock" and probably also "Value of Yahoo Japan stock". My bet is if you do that, you'll come up with a number that makes sense given Yahoo's market price.
Re: Alibaba Raises $21.8B in Initial Public Offering
#26Alibaba going for a higher selling price just makes the continued undervaluing of Yahoo itself increasingly hilarious. At some point, I would think someone will want to buy them for all of this free money they have sitting around. YHOO market cap : 42.3bn + liabilities : 3.7bn = 46bn (to own outright) Meanwhile: Cash on hand = 1.1bn + Other assets = 15.3bn + Cash from Alibaba sale = 8.3bn + Value of remaining Alibaba…
There are still a lot of tax questions. Some explanation:
http://online.barrons.com/news/articles/SB521330210524938232...
> Investors now value Yahoo on a sum-of-the-parts basis. The core business could be worth $8 a share and its cash and Yahoo! Japan stake could be worth another $8 a share (assuming a full tax bite on the sale of Yahoo Japan). The 140 million shares of Alibaba to be sold in the IPO should net after taxes around $6 billion, or $6 a share. That totals about $22 a share.
> So, Yahoo's share price direction probably hinges on the value of the remaining Alibaba stake—based on the Alibaba share price—and the tax treatment of the likely sale or disposition of that stock.
> Bulls argue that Yahoo's shares could trade into the $50 range if Alibaba appreciates sharply after the IPO and Yahoo can find a way to get its remaining stake to holders in a tax-efficient way. This also suggests that Yahoo shares could find support around current levels given the value of that Alibaba stake.
Re: Alibaba Raises $21.8B in Initial Public Offering
#27Earlier quoted context omitted.
So should I buy some Yahoo stock?
Why would that follow?
Because if all shares of the company is valued at X, and the tangible assets of the company are valued at Y, and X < Y, then isn't Yahoo's stock objectively undervalued? I'm not some sophisticated investor, I just buy index funds, but isn't this kind of objective valuation of companies the basis of value investing a-la Warren Buffet?
Re: Alibaba Raises $21.8B in Initial Public Offering
#28Gosh....that's barely more than WhatsApp. Woulda done better selling it to Facebook. More seriously, the Economist put a valuation at $55-$120b. This puts it at $168b. Or 9 WhatsApps. The IPO was expected to raise $20b, so this is really good. It took 3 years after founding in 1998 to reach profitability. It defies most conventional notions of a startup, despite having started in somebody's apartment. It's unbelievab…
>It defies most conventional notions of a startup... It's unbelievably unfocused, it does pretty much every kind of business you can do on the Internet.
It defies the Silicon Valley notion of startup. China's internet market is still new, and Alibaba is like Yahoo in the old days - it does everything online.
Hopefully it doesn't turn out like Yahoo.
Re: Alibaba Raises $21.8B in Initial Public Offering
#29Alibaba going for a higher selling price just makes the continued undervaluing of Yahoo itself increasingly hilarious. At some point, I would think someone will want to buy them for all of this free money they have sitting around. YHOO market cap : 42.3bn + liabilities : 3.7bn = 46bn (to own outright) Meanwhile: Cash on hand = 1.1bn + Other assets = 15.3bn + Cash from Alibaba sale = 8.3bn + Value of remaining Alibaba…
I think you've got a mistake with how you've figured in liabilities. They should be subtracted from assets, not market cap. So, using your numbers, the difference is closer to $10b, not $17b.
You're right, I adjusted the numbers a bit. That leaves $9.7bn of free money laying around, if you can get at it.
(minus taxes and discounts on the value, etc.)
Re: Alibaba Raises $21.8B in Initial Public Offering
#30Gosh....that's barely more than WhatsApp. Woulda done better selling it to Facebook. More seriously, the Economist put a valuation at $55-$120b. This puts it at $168b. Or 9 WhatsApps. The IPO was expected to raise $20b, so this is really good. It took 3 years after founding in 1998 to reach profitability. It defies most conventional notions of a startup, despite having started in somebody's apartment. It's unbelievab…
> It's unbelievably unfocused
That's because Jack Ma is unbelievably focused.