BABA: technical data is as clear as daylight
There's really not much more to be said about BABA that hasn't already been said
The technical data is as clear as daylight.
BABA is a textbook example of what a stock looks like as it tries to carve out a long-term bottom.
The fundamental data is equally as clear. BABA is the textbook definition of a value stock at this point.
I suppose the only thing left is to try to provide context with some hard data.
BABA has $30 billion left on the buyback. If the average price were $70 (and assuming little to no dilution) then BABA would reduce its share count by 428.6 million shares. The current share count is 2.434 billion. So BABA would reduce its share count by up to 20% upon the full realization of the buyback plan.
That percentage is incredibly high for just one buyback plan carried out over a three year period. Should the Chinese economy and BABA eventually recover, BABA’s multiple expansion would lead it soar easily past $200, and most likely past $300.
As with any stock, a bet on BABA is not without risks. But in looking at all of the data, it’s hard to argue against the logic of it at this point. Whether the gamble pans out will be left up to the price action gods, but at least you are betting with the likes of Charlie Munger and Michael Burry and not against them.
Fortune favors the bold, as the old saying goes.
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