Interestingly, Alibaba has been on a wild see-saw ride over the past year with unprecdented level of violatitlity thanks to the antics of the King of Mayhem Donald Trump who ranted on China for violating the trade pact reached in Geneva to avoid punishing Geneva. On mid-may 2025, Alibaba hit a high of HKD131 per share but yesterday it went down to HKD110 on 2 June 2025. This is a crazy drop of 16% within 2 short weeks.
1. Added 300 Alibaba shares at HKD110 per share
When I happened to see the sudden dip to HKD110 level just before lunch break, I decided to take action and accumulate additional 9988 stocks. I pumped in S$2K and also sold off all my Industrial and Commercial Bank of China stocks to raise funds to purchase 300 Alibaba shares. Alibaba cloud busines looks promising in the long term with ambitious global growth-this is now the new growth engine of Alibaba.
2. The famous AK71 now also buying Alibaba
When you see long time critic of Alibaba and China stocks now changing his stock pick to Alibaba, it does point to the severe undervaluation of its current weak market share price relative to its underlying business growth potential. But I kinda find it amusing that AK71 just changed tune like that when over the past few years, his stand on China was that it was uninvestable due to political/policy changes risk.
Parting thoughts
I may acquire further Alibaba shares if the price plunge to HKD100 level or below. In addition, Alibaba will be paying out its annual dividend soon. For those interested, it will ex-dividend on 11 June 2025 (Wednesday) and payout US$0.2501 per share on 3 July 2025 (Thursday). This is a 1.7% dividend yield and not too bad while waiting for the market to re-price Alibaba.
Yeah, AK71 is right - China has political/policy changes risk but now US risk in these areas are even higher. Hard to imagine in pre-Trump era.
ReplyDeleteYup, US mkt risk with Trump whacking tariffs on imported goods is a self own goal esp with the sky high valuation.
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