LKNCY - Alibaba: 'New' Risk Was Hiding In Plain Sight

• It is an understatement to say Alibaba Group has had a troubled year. The bear camp has churned out numerous risk factors to watch out for.
• However, I argue here that the investment blacklist that has ensnared hundreds of Chinese entities is the big hairy monster that BABA shareholders should be in full alert of.
• The Biden administration has expanded on the tactic first employed by the Trump administration. Alibaba Group fits the justifications used for the latest additions.
• The base case, however, remains that cooler heads and calmer minds would prevail eventually.
• Nonetheless, the stock is highly speculative and volatile. It is not suitable for conservative investors and those with a short holding period.

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