Indices are taking a rest after many days of UP move. European markets are lower by .41% to .83%.
S&P 500 @ 1676.27, high today 1683.73
Internals are negative.
Oil Down 37 cents
Gold UP $7.30
Canadian $ UP 51 tick @ 96.41
VIX UP 3.77% @ 14.31
In my portfolio :
Sold BBRY @ $9.25
Bought MU @ $13.27
Bought KORS @ $61.85
Portfolio EBAY KOG KORS MU AUY
Exposure 113%
Most stocks are down
@ 2.19 following are green :
EBAY KOG MU AUY CSIQ TCK LEN NFLX
AMZN AAPL EXPE RDN SU BIDU GG
CRUS FB BRCM AMCC QCOM
NVDA MCD EGO SLW AEM
SINA MLNX WYNN.....
BLOG does NOT give buy or sell.
Saleem
5 comments:
Hey Saleem,
YHOO is so interesting. With the automatic put based on the Alibaba valuation, it seems a good risk/reward to see if YHOO can actually gain traction in their businesses. I've been watching for a while now, and been tempted many times, but still hold off because I fear the dead money scenario.
I get the feeling that Alibaba might file for IPO in coming months, and the Yahoo fever would be massive once that's announced. If anything, maybe the way to play is upside calls. The Sept 29 calls for $.50 tomorrow (closed at $0.65 today) might give the best combination of speculative upside and time.
Stocktrader
Hi Stocktrader,
What gives you the feeling that Alibaba is imminent?
Saleem
Hey Saleem,
Hmm, good question. I'm not exactly sure how I came to that perception, and I'm definitely not an expert on Yahoo! or Alibaba at all, but here are some things just from this week that caught my attention:
1.
"The company’s billionaire founder, Jack Ma, said last year that it may go public within five years. Proceeds from the sale would be used along with additional cash to buy back stock held by Yahoo, a person with knowledge of the matter said in May. Alibaba Chief Executive Officer Jonathan Lu told China Daily newspaper last week that the IPO proceeds will help fund acquisitions."
http://www.bloomberg.com/news/2013-07-16/alibaba-first-quarter-net-income-triples-to-669-million.html?cmpid=yhoo
Seems like they're starting to "spend" the cash.
2.
"The company’s first-quarter gross profit almost doubled to $1.02 billion and income from operations more than tripled to to $709 million, according to the Yahoo presentation."
http://www.bloomberg.com/news/2013-07-16/alibaba-first-quarter-net-income-triples-to-669-million.html?cmpid=yhoo
Already a huge IPO, you don't want to risk decelerating growth as you go public.
3.
"China has authorized billionaire Jack Ma’s Alibaba Group to expand funding for its online loans business, designed to shake up an industry divided into heavily regulated state banks and shady financing schemes.
Alibaba’s financial business is stirring things up like “a catfish” and has the potential to become “a whale,” Macquarie’s Wang said. “Its big data and experience in IT gives it great advantages compared with traditional financial services.”
“Finance is the missing piece in Alibaba’s business operations,” said All-Stars Investment’s Ji. “In the future the most scalable and profitable part of Alibaba’s business could be its financial platform.” "
http://www.bloomberg.com/news/2013-07-14/billionaire-ma-s-alibaba-gets-nod-to-stir-up-loans-china-credit.html
IPO proceeds could help them really get a bank vault of cash for this new frontier.
...
I know all this doesn't say anything for certain, but put together it kind of turned on a small lightbulb for me.
Stocktrader
Hi Stocktrader,
Thanks for taking the time to list many statements & facts from many sources.
As you know that i do follow YHOO closely, i listened to their cc this evening......somehow there was nothing to gather anything about Alibaba....
To my surprise YHOO cashed in their preferred stake in Alibaba...i may be mixing some facts here...but bottom line is YHOO has reduced their exposure in Alibaba for a while & it is down to few billions now???
YHOO is always on my radar & try to see what they are saying about Alibaba...what CFO mentioned that he thinks that IPO valuation maybe in $60 billion but his personal opinion is $70 billion IPO is more fair..he also thinks that on opening it may fetch $100 billion.....
Saleem
Hi Stocktrader,
Right after i penned down..i realized that Alibaba valuation numbers were NOT from CFO but from a guest on CNBC.
Saleem
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