2024-05-18 06:45:48 ET
Summary
- Alibaba Group Holding Limited is undervalued by looking at traditional financial metrics.
- The political risk associated with investing in Chinese equities, including BABA, is the Elephant in the Room and the point to be discussed.
- I believe Chinese stocks are not investable at this point due to the CCP's anti-globalization stance and its track record of dismantling Deng Xiaoping's economic reforms.
- BABA is a risky asymmetric bet on the direction of economic policies in China. Political risk is nearly impossible to predict, so I recommend avoiding this stock.
Alibaba Group Holding Limited ( BABA ) is undervalued by looking at traditional financial metrics. The “elephant in the room” for this stock is the political risk associated with investing in Chinese equities . BABA has been a primary target in the Chinese government's crackdown on corruption and private company ownership. This article will discuss the political risks involved and evaluate whether BABA is a stock worth considering.
Thesis: BABA is a Risky Asymmetric Bet against the current Chinese political leadership
Read the full article on Seeking Alpha
For further details see:
Alibaba: Let's Talk About The Elephant In The Room