My Take on Alibaba (BABA)

I was asked yesterday by Benzinga (Marketfy's parent company) to give a comment on the upcoming earnings announcement from China's meganormous online retailer, Alibaba (BABA).  You'll find my comments in full here: CLICK HERE.

You'll find the actual earnings report stats HERE and HERE.

So I nailed the overall results, but had the individual bits reversed.  I predicted a top-line beat and a bottom-line miss.  It was, in fact, the other way around.  And GMV values, the real concern of analysts, were actually pretty good, all things considered.  The market reaction was as predicted, however, as investors immediately began selling the news, with shares falling 7% in premarket trading.

Of the 3 big online rivals -- AMZN, EBAY, BABA -- Alibaba is your best bet, given the growth potential in China.  I'll take a 46% profit margin any day of the week.  But this is no longer your uncle's China.  The world's largest country, and arguably largest economy, has seen a 40% cut in its growth rate and it is likely going lower as government overreach puts a damper on the party.  Alibaba, to its credit, is fighting government regulation, much to the chagrin of the onlooking public.  It is indeed a new day in Red China.  Unfortunately, their chances of success are slim.

I like BABA shares going forward.  But let the "sell the news" crowd thin out first.  A drop back to $85 would be a nice entry point.  In my Dr. Stoxx Options Letter, we've been playing BABA using put-writes.  We don't have any position in the stock now, but today's drop may provide a nice opportunity to sell some premium in order to lower costs on an eventual purchase.

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Still Bullish? You Need to Read This!

"I am so bearish, I am growing fur!"

Those words were recently spoken by well known "market wizard", Mark Cook.  Mark doesn't often make a pronouncement like this, so when he does it is best to take note.  I'm not ...

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The Case for Gold at $3000

Article sponsored by: the Dr. Stoxx Options Letter

Back in September, 2012, shortly after the price of gold had rallied from lows under $1600 to a tag of the $1800 level, Bank of America came out with a call to buy the shiny ...

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Using Moving Averages to Determine Trend and Entries

I just published an article over on the Trading Buddy site for my friend, Paul Bratby.  It's on how to use moving averages to determine price trends, entries and exits.  

You'll find the original here: http://www.mytradingbuddy.com/blog/forex/moving-av...

For many years I ...

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Where the Markets are Headed on Thursday

MARKET COMMENTS: Wednesday's market got ugly fast after a gap down on horrible...I mean truly horrible...retail sales numbers along with a big hairy eps miss by JP Morgan. At one point the DJIA was down over 350 points. This was a big disappointment ...

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S&P 500, Oil and Gold Miners: Up or Down from Here?

I want to take a look at where this market stands technically. As you'll see from the chart below, the S&P 500 is trading within a narrowing range near its all-time highs, and is possibly forming a bearish Head & Shoulders ...

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Do We Buy or Sell This Pullback? 4 Tests

There are plenty of ways to determine whether an uptrend is sustainable going forward.  Some of the more effective among these are:

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Aegean Marine: A Growing Greek Oil Company? Really?

Jan. 5, 2015 3:55 PM ET | About: Aegean Marine Petroleum Network Inc. (ANW)

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The Smelts of the SmallCaps System!

Quite often, in life as well as trading, the simplest things are the best things. The “Dogs of the Dow” is one of the simplest trading systems out there. The methodology is straightforward: buy the Dow Jones Industrial stocks with the highest ...

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2014: The Year of the Biotech!

Around this time each year I like to run a series of scans on all stocks to sort out the most successful companies over the past year.  I have a number of favorite metrics I use to find the best ...

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I do not leave reviews that often, but I have never seen returns like this before in my account. His work is amazing and recommend it to anyone who's serious about investing.
         
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