Alibaba Group Holding Ltd (BABA)

[UpTickMeA$AP]

Reality.

Institutional holdings on most solid companies is 85-95%.

BABA is at 43%

Why is it so low compared to most successful companies at 85-95%? Simple.

Even if Alibaba’s underlying business model is sound, you still do not necessarily own a stake in the productive assets of the firm.
Instead, you own shares of a Cayman Islands-based company that contracts with Alibaba to receive a share of the profits. This comes from a Chinese law that forbids foreign investment in Chinese tech firms.
This brings problems.

The 43% are mostly algorithm driven institutions. We all know what that means.. Not good.

At every turn you find the stink of Chinese structure. China is well known for always finding a way to try and screw the dollar.

Dump china, buy American.

Its important people know what they own here. Its very ugly.


Just a matter of time before BABA get slaughtered. Plus, at these prices.. Who wants to buy this filth at these prices? Besides algorithm running institutions, most likely not many. China has a long long history of this filth.

It is what it is.