Alibaba Group Holding (BABA)

Even though the stock has pulled back on its revenue miss, it is still a very expensive stock. As a value investor, it is very hard for her to assess what the downside on the name is.

Dropped because there was a disappointment in their growth and there was a tiff with the Chinese government. If you take a long term view, it is an absolute power house for the Chinese consumer. 5 years from now you will find this is a business that thrives. They made a big acquisition today, however. There are short term risks. This would be the single best consumer play in China

It is on the expensive side, although it has a lot of growth to it and it would be the reasonable one of the group. He is bullish on technology and thinks this one will work out just fine. It just wouldn’t be his favourite stock. China’s economy would be good for it because they are moving toward a consumer economy. He thinks you will do fine in it.

Long-term history isn't there, so it is going to be a pretty volatile start, until you start to see some more quarters come out of it. The nice thing about this one is that you are getting a real marketplace. Doesn't have a lot of overhead. A little too early for him to own, but this is a name that is on his radar.

Trading at an extremely high multiple. The growth prospects in China, for online commerce, are very attractive. There is a lot of future potential, but with the stock already trading at 40 or 50 plus earnings on a PE multiple, expectations are already built in.

This has been the bellwether name of the e-commerce platform space. Very high-profile IPO, and when comparing the screens with others it seems undervalued, has better margins, and the business itself is set up in a manner that is out there to capture the whole e-commerce spend in China. He thinks it will start trading at a slight premium going forward and show better numbers on the top line and the margin space compared to something like Amazon (AMZN-Q) or eBay (AMZN-Q). Fundamentally, the space looks very interesting. (See Top Picks.)

The trend is really their friend in what they are trying to do. If you own, you are in good shape and he would continue to hold tight.

There is a lot of positive momentum here. What is very impressive is how it has held up in this market decline. The high valuation technology sector has done very well, where there haven’t been earning disappointments. People are paying up for the growth potential down the road. Has a bit of a question mark on the Chinese accounting, and would discount the stock a little bit on that basis. If you are going to own a high risk stock, you could do worse than owning this one.

The vast majority of IPOs are down in value a year later. This one could prove to be the exception. It has been growing by leaps and bounds. The growth has slowed, but is still absolutely huge. Thinks that about 50% of the people in China still do not have the Internet. They are going to get hooked up over time. This company is going to start doing more globally in the US. If the markets get hit, this one could come down a long ways. He wouldn’t be buying into this.

Alibaba IPO. Rumour is that this will open in the $60-$70 range. He tried, but couldn’t figure out the fundamental value of this. He has it coming with a valuation of EBV+7, which is very, very expensive. Until he gets a final balance sheet, and one or two quarters down the road, he is taking a wide step away from this. He has been playing this through Yahoo (YH00-Q). He would buy Yahoo instead.