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Guessing JD.com is likely in specie dividend from Tencent rather than "add"
(15-02-2022, 05:15 PM)dreamybear Wrote: Alibaba’s key backer Temasek trims stake, adds rivals JD.com and Pinduoduo in portfolio tweak
Published: 9:27am, 15 Feb, 2022
Temasek Holdings trimmed its stake in Alibaba Group Holding last quarter while the stock slumped to new lows, and added Chinese e-c0mmerce rivals Pinduoduo and JD.com to its portfolio, according to its latest 13F filing ......
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https://www.scmp.com/business/markets/ar...-jdcom-and
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Just FYI, the JD specie shares will only be issued on march 25th. So report is correct that Temasek has added JD. Probably channeling the funds from Alibaba sales.
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15-02-2022, 08:03 PM
(This post was last modified: 15-02-2022, 08:06 PM by specuvestor.)
Depends whether ex date or credit date. Most institutions will go by ex date else NAV would change.
My guess cause it's only US$12.2m for a new position of a liquid stock
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
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China tech crackdown: Meituan, Ele.me, other on-demand delivery providers face dim prospects amid Beijing’s scrutiny, analysts say
https://www.scmp.com/tech/policy/article...iders-face
China Tells Banks, State Firms to Report Exposure to Jack Ma’s Ant
https://finance.yahoo.com/news/china-tel...03118.html
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Alibaba shares slip after it reports slowest ever revenue growth and misses expectations
https://www.cnbc.com/2022/02/24/alibaba-...e-ipo.html
Quote:*The 10% revenue growth is the slowest quarterly year-on-year growth rate for the company since its 2014 U.S. listing.
*Alibaba has been facing macroeconomic headwinds and increased competition in China, which have weighed on the company’s business.
*Alibaba shares closed 0.7% lower on Thursday.
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger
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Thought experiment: What is Alibaba worth, if topline growth slows <10%, net margin compressed due to increased cost from regulations and competition (benefitting from regulations); and most of the profits can't be returned to shareholders, due to "common prosperity" initiatives?
(ex-investor)
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger
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(25-02-2022, 11:33 AM)Wildreamz Wrote: Thought experiment: What is Alibaba worth, if topline growth slows <10%, net margin compressed due to increased cost from regulations and competition (benefitting from regulations); and most of the profits can't be returned to shareholders, due to "common prosperity" initiatives?
(ex-investor)
If most/ all profits cannot be return to shareholders in the future. Alibaba is worth zero or close to zero. Simple!
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Two ways to return in China's landscape.
Share buybacks and handing out the shares of listed subsidiaries to shareholders. I think that was the plan for Ant
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(25-02-2022, 12:37 PM)donmihaihai Wrote: (25-02-2022, 11:33 AM)Wildreamz Wrote: Thought experiment: What is Alibaba worth, if topline growth slows <10%, net margin compressed due to increased cost from regulations and competition (benefitting from regulations); and most of the profits can't be returned to shareholders, due to "common prosperity" initiatives?
(ex-investor)
If most/ all profits cannot be return to shareholders in the future. Alibaba is worth zero or close to zero. Simple!
hi donmihaihai,
Let's don on the lens of value investing. I think it should be worth at least "liquidation value" or "replacement cost". To be conservative, let's put it as "liquidation value".
I believe a social enterprise that is not profit driven, is still "worth something". For example, Philanthropist A is a new billionaire and wants to leave his name in history. But he is in a rush as he is really old. Rather than do a greenfield startup which takes time, he could purchase an existing social enterprise from Philanthropist B (replacement cost). And when Philanthropist A passes on and his heir decide to cash out, they could break up the social enterprise into parts and sell (liquidation value).
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Alibaba has a VIE; hence, shareholders are only entitled to the profits, "control" but not "ownership" of the assets:
Quote:Real Tencent then creates a complex web of legal agreements that serve to give Fake Tencent a claim on the profits and control of the assets that belong to Real Tencent.
(Note that there is no recognition of any actual ownership, just a claim on the profits and indication of an element of control)
Source: https://gci-investors.com/chinese-vie-st...the-risks/
Not sure if "liquidation value" has any barring to the VIE shareholders. Please correct me if I'm wrong.
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger
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