Guess I Can Forget about Alibaba

All my efforts were wasted as November 6th came and went and my money is still sitting in my E-Trade account.

Last night I logged into my account and tried to see if I could buy 1688.HK when the stock was at HK$29.90 though I knew it was almost impossible because of the rule. And indeed I got an error saying the stock isn’t available at this time, no 40-day period was mentioned, but I was certain that’s the reason.

Then the stock surged to close its first trading day at HK$39.50, making Alibaba.com the second largest internet company in Asia, only after Yahoo Japan (Bloomberg.com). At 155 times 2008 earning estimate, Alibaba’s share price could fell in the coming days (currently at HK$35.35 in Hong Kong trading), but what will happen after the 40-day waiting period is over is anybody’s guess. In the long term, however, investors buy this stock for its growth potentials (the company indicated that proceeds from the IPO will be used for expand the company’s user base). Another high-flying Chinese internet stock, Baidu.com (BIDU) is currently traded at nearly 200 times of forward earning estimate.

Let me see if I can afford some on December 17th. I am not very optimistic though.

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4 Responses to “Guess I Can Forget about Alibaba”

  1. Money Blue Book |  Nov 07, 2007 at 2:21 am

    Geez and all this time I thought I was the only one who liked to invest on the wild side. Heh.. Alibaba has tripled its price and is likely overvalued at this point.

    Lots of China IPO’s coming up…wish it was possible to get in on some of these.
    -Raymond

  2. Glenn |  Nov 07, 2007 at 9:13 am

    I read this morning even if it falls to $3.86 a share it is still will be trading at 200 times it’s PE ratio.

  3. MoneyNing |  Nov 07, 2007 at 3:51 pm

    You might be able to since the last few days killing the china/hk stocks. Good luck in a month!

  4. David |  Dec 12, 2007 at 8:27 pm

    So Alibaba shares will become available on 12/17. Do folks think this is a good entry point? The stock has gone up quite a bit from the IPO.

    I’ve also heard other companies claim that Alibaba doesn’t have much of a competitive advantage and can be compared to a “directory” service.