Q: Hi team,
Great investment service. I seem to have trouble using a credit (a great problem) as when I am composing a question, I check the new Q&A and another subscriber has already asked a similar one on that security. So I get my question answered for free. I guess I will have to go outside Canada to use one.
The only time I invested in a company in China was in Sino-Forest about 7-8 years ago. It was an Action List Buy from TD. A few days later it was in freefall and I was down 25% before I could get out.
Eight years later, I am now considering BABA as another investment based in China. Most analysts are very enthusiastic about BABA as potentially having a bigger impact on e-commerce than AMZN. However, they always warn about the political risks of BABA. What exactly are the risks? Sino-Forest was a fraud. I don’t think BABA is a fraud. What else could happen? Could the Chinese Government nationalize the company or part thereof?
Also, earnings are coming out Thursday evening. I don’t usually like to step into a stock just before earnings. You could get a pop or a drop. So, what are all these political risks with BABA that the analysts allude to and would you purchase before earnings release, or if at all?
thanks
dave
Great investment service. I seem to have trouble using a credit (a great problem) as when I am composing a question, I check the new Q&A and another subscriber has already asked a similar one on that security. So I get my question answered for free. I guess I will have to go outside Canada to use one.
The only time I invested in a company in China was in Sino-Forest about 7-8 years ago. It was an Action List Buy from TD. A few days later it was in freefall and I was down 25% before I could get out.
Eight years later, I am now considering BABA as another investment based in China. Most analysts are very enthusiastic about BABA as potentially having a bigger impact on e-commerce than AMZN. However, they always warn about the political risks of BABA. What exactly are the risks? Sino-Forest was a fraud. I don’t think BABA is a fraud. What else could happen? Could the Chinese Government nationalize the company or part thereof?
Also, earnings are coming out Thursday evening. I don’t usually like to step into a stock just before earnings. You could get a pop or a drop. So, what are all these political risks with BABA that the analysts allude to and would you purchase before earnings release, or if at all?
thanks
dave