Rob Sechan, Managing Partner, New Edge Capital Alibaba Group Holding BABA-N BUY Sep 22, 2023

Some of his colleagues like it. America is overly negative on China; America has always needed an enemy. The valuation is cheap compared to Amazon. If you're bullish China, BABA could be a buy.

Sideways trading range. Looking for a breakout above 2023 highs. So many other names look so much better. China may see a bit of a bounce over the next couple of months, but we are getting to the end of the cycle. He'd lean toward taking risk off.

Short answer is yes, he likes it. He was selling into strength a few months ago. Now he's looking to reload. On a 5-year chart, you can see the massive bottoming pattern. Won't see numbers like the previous highs again. Probably worth $125-150 over the next few years, if they can stimulate the consumer and the consumer responds.

Chinese consumers have tons of savings, so the potential is there. Buy on pullbacks. One of the best value retail names out there. But you have to be OK with China exposure.

It's the only Chinese stock he will recommend. Maybe Trump will do something more creative than Biden did towards China.

Challenges: Trump's presidency who was negative towards China before. Revenues continue to rise, but earnings have been cut in half from the peak. Also, regulators in China tend to meddle in companies. 

He saw it as a cheap way to play China's resurgence. He round-tripped it, up and down. We've reached peak pessimism here, so you can own it now.

Chinese stocks have been moving up, partly because of outflows from India and into China. BABA is the best of China's stocks with the most upside. It's close to returning to its high.

Like Amazon, they dominate key secular growth areas in e-commerce, are in cloud computer though trade at only one third of Amazon's PE. Is a modest grower, but has a huge margin of safety. There's so much pessimism about tariffs now. Wait and see, but would be an opportunity if the tariffs are more bark than bite.

He just bought it. It has momentum, just taking out its recent 6-month high at $118, and has a path towards $150.

The country square in the bullseye of the US during the tariff war is China. Until there's resolution in tariffs, don't touch China. The future is unknown and could be negative. Both countries are at each other's throats.