Alibaba Group Holding (BABA)

They're not really the Amazon of China, because they're more B2B. They've dropped a lot, dragged down by tariff talks. Many Chinese tech stocks have fallen off, too. He respects Jack Ma. Alibaba meets his criteria on equity metrics, but what will happen between the US and China? Hold and maybe add at current levels.

The IPO was done at around $70-$80 per share. There is concern over the US currency exposure. This is on-trend with the growing middle class in China. Sales are growing at 18-20% per year, which justifies the valuation. It is a good long term hold.

An important Chinese company. Only 16% of Chinese stocks have an upward bias now. He closely watches Chinese stocks. Alibaba has held on longer than most in China, but it eventually broke support at $170. He needs the Chinese market and Alibaba to recover (to $170) before he steps back in. We're in a time when he'd favour US stocks over Chinese given trade tensions.

He has no reason not to own Alibaba except that it is a Chinese company and he has had bad experiences with the ethics of Chinese businesses. He recommends buying Google or Facebook instead.

Long-term, makes a lot of sense. Much better valuation than Amazon. Has almost a 30% growth rate. These names have been beaten up because of US-Asia Pacific sentiment. Put your stop losses in place. At some point, China-US relations will get better.

This is a density play. The population density in China is so great that digital communications is deeply needed (i.e. to get things delivered and communicate with people). Alibaba has executed very well. Hold or sell if you're underwater now. Valuations are stretched. You can see a better entry point letter. If there's a global recession he would definitely buy this.

Can't fathom its accounting, so he won't buy it. Where is the real cash and revenue generation? He's rather own Google, because he can understand its financials. Also, the Chinese squabble with the U.S. could hurt Alibaba.

This is pretty much the market in China. It has been consolidating for awhile, probably because of trade concerns. He does not see any breakdown, this is a consolidation. Can probably pick up safely at the low points of the trading range.

Penalized for missing on earnings. Great growth story, but it doesn’t have the cloud services that Amazon has. A little bit cautious. Wait for it to settle down before looking at it.

They are dominant. Are generating cash hand over fist and are continuing to grow. Earnings are out this week. Longer term with the cash generating capability is staggering. Might see the growth slow a bit. Yield = 0% (Analysts’ price target is $240.50)

Chinese version of Amazon. Growth with the Chinese consumer has been the positive tailwind story. Problem now is the high multiple, plus trade spat with US has taken wind out of the sails of Chinese economy.

He doesn’t think that Alibaba has dropped very much compared to its volatility. He sees this stock as defensible: he likes the market, the industry and the name. He sees the technical action of the stock as a consolidation pattern. The company is growing rapidly. It’s PE ratio is high but its PEG ratio (price/earnings relative to growth) is not far from 1, which is a reasonable level. Compared to other momentum stocks, like Netflix, a stock with a PEG of 1 is priced much less aggressively. (Analysts’ price target is $241.14)

This is China’s answer to Amazon. They are more integrated, including delivery and infrastructure. It offers access to the world’s second largest economy. Marketcap of $500 billion.

Great company with incredible growth. The stock has consolidated for nearly the past year. Wait for seasonality starting in early October.

One of his biggest positions and a past pick. It's in the tech sector that grows at least 30% a year. They're not in the U.S. that much, but big across southeast Asia and even in Russia. This has lots of legs and opportunity.