Is Alibaba comparable to a US company?

#1

Post by e15ctr0n » Sun, Sep 21, 2014, 5:26 PM UTC

Is Alibaba comparable to a US company?
cis471.blogspot.com

Re: Is Alibaba comparable to a US company?

#2

Post by viktorppt » Sun, Sep 21, 2014, 9:09 PM UTC

Promising title but really a disappointing blog with very little substance or insight.

The blog never answered the question that it was meant to answer.

Ultimately the only evidence it was trying to draw was from Asian stereotypes.

Quote:

  For example, this pre-departure guide for Chinese students contrasts an individualistic US with a collectivist China.

Re: Is Alibaba comparable to a US company?

#3

Post by Zigurd » Sun, Sep 21, 2014, 9:23 PM UTC

Short answer: Yes. It will have to earn a valuation by similar means because the rest of the China internet economy will converge on a global model (Which might be a little different from a US model, but probably fairly close).

This isn't investment advice. "The market can stay irrational longer than you can stay solvent."

Re: Is Alibaba comparable to a US company?

#4

Post by seanmcdirmid » Sun, Sep 21, 2014, 10:07 PM UTC

Zigurd wrote: post #3

Short answer: Yes. It will have to earn a valuation by similar means because the rest of the China internet economy will converge on a global model (Which might be a little different from a US model, but probably fairly close). This isn't investment advice. "The market can stay irrational longer than you can stay solvent."

Much of the Chinese market is closed, which will artificially prevent convergence to a global model.

Re: Is Alibaba comparable to a US company?

#5

Post by marincounty » Sun, Sep 21, 2014, 10:42 PM UTC

It's Chinese owned, but incorporated in the Caymen Islands. Chinese law prohibits foreign ownership. Investors will own a Chinese company in the Caymen Islands; This all might be illegial under Chinese Law? The BOD's consisted of Jack and eight other insiders. The site is loaded with counterfit products, and they spam like it was 1999.

In other words, it's a lot like U.S. corporations.(at least with money somehow ending up in the Caymen Islands!) P.S. on the upside, if they can keep shipping low, weed out the blatent counterfiters--Jeff's company has some competition, for awhile? Personally, I've been tempted to buy, but lose my nerve.

This company will not be listed with S & P 500, while U.S. investors are allowed to invest in it? It's confusing--I'm still wondering why NQ mobile is still on the exchanges? On another note, I'll be glad when interest rates go up; so my measly CD will start making a little interest. No, I don't invest. I just keep my rainy day fund in a CD. I just can't take the risk of loosing money that hard earned money. I'm not proud of my lack of investing over the years.