Alibaba Group Holding (BABA)

The world's largest online and mobile commerce. Has a huge, untapped internet audience in China with half the penetration rate of the U.S. Long runway. Management just raised guidance on revenue growth to 55% from 49%. Compared to Amazon, trading cheaply. (Analysts price target: $229.86)

An expensive stock. It's centric to China and they want to be more global, therefore it's becoming riskier. They have unique businesses like Alipay which is used aggressively within China. It'll be hard to move beyond. He'd rather buy Amazon. Then again, there are a lot of people (customers) in China.

This is China’s largest online marketplace. It is very similar to Amazon and is very dominate – growing at 60-70% year over year. He likes the backdrop of Chinese equities, but there is risk when dealing in China. He sees the vast market size of this market as attractive. It plays a part in a portfolio strategy.

This is a play on global e-commerce. A well-run company and better than Amazon, because they simply connect the supplier with the end-user – avoiding building large warehouses. The multiple is 33X earnings with a 40% compound annual growth rate on revenues. Governance should not be an issue with the Chinese government. Yield 0%. (Analysts’ price target is $229.86 )

They control 80% of the e-commerce market in China. They have their own cloud as well as AliPay, which is expanding throughout Asia. T-Mall is an online digital mall. They are growing about 40% top line and 20% bottom line. (Analysts’ target: $229.82).

Looking at the Price to Earnings multiple, this stock is overvalued. It has had a huge run up over the last year, but the market was expecting more. It is difficult to model the downside of this stock and so she will not buy it.

It is a cloud play. It is a Chinese AMZN-Q. Hang tight. This one can really whip around. He cannot knock it. Give it some time before expecting it to go up. It has not cracked from a technical point of view.

He is fascinated by what all these Chinese companies are doing. He hasn’t made any investment in China. Makes him nervous. He prefers North American cos. But he would look at them if there is a significant pullback. (Analysts’ price target is $230)

Alibaba (BABA-N) or Amazon (AMZN-Q)? You can buy both and he would. Don't use multiples to under valuations, but rather look at invested capital. Estimates 15-20% return on invested capital for Amazon. Alibaba is equal if not slightly better than Amazon. 18% ROIC. Loves both, but would slightly prefer Alibaba.

Doesn't feel this is a value stock, but one reason it has been so successful in China, really has to do with the population. He would like to see it a little lower. This is one you can buy on a correction and then hold it long-term.

This is China's largest global online market place and is growing very rapidly. It’s not inexpensive. Trading at something like 40X next year's earnings estimate. There are political risks, because it is in China. The structural theme of online retail and marketplace is not one that is going to go away anytime soon. This should grow 50% this year and maybe another 30%-40% next year. Estimates are being revised higher.

Bank of America (BAC-N), Boeing (BA-N) or Ali Baba (BABA-N)? His choice would definitely be Bank of America. He lukewarm on Ali Baba compared to a Google or Amazon.

Has had a great growth run. Revenues in the last quarter were up 61%. They dominate the Chinese market, which Amazon (AMZN-Q) is not able to get into. There are concentration risks, because it has been such a wonderful performer over the last 2 years. Because it doesn't pay a dividend and because it is part of the momentum stocks, if you doubled your money he would have no problem taking half off the table and letting the rest run.

This is right in the heart of e-commerce alongside of Amazon (AMZN-Q). It really is a juggernaut, growing at a tremendous rate. The most recent quarter revenues were up 63% and earnings were up 65%. The Internet stocks have had a tremendous year, especially Internet retail as a whole. It’s one you could have a little piece of to participate in the very important structural theme, which is not slowing down at all.

It’s a good idea to be exposed 10% to the high flyers. You should use stops. You have to hang in if you are right too early. They beat earnings consistently and have a buy back in place right now. They have good strategy and a good management team in place. It has not broken technically.