Eagle Bay makes a compelling case as to why you should consider buying Alibabla (BABA) today. You can review it here Is Now The Time To Buy Alibaba?
With that in mind, here is the other side of the equation.
- The company is so massively and spectacularly overpriced, its not even funny. I wrote about it earlier Alibaba Stupidity
- If you have used Alibaba to source anything, as I have, you soon come to realize that 50% of the businesses on there are either inactive or they are trying to scam the other 50%. And while a useful tool, I am not sure the Alibaba has the future investors are so excited about. Recent regulatory inquiries into their business practices make that clear.
- It’s an IPO and the chart doesn’t yet have a clearly defined trading setup. That is to say, it can easily go either way.
- We are on verge of a bear market leg. As per my primary forecast. If so, this is not a good time to go long a stock that is massively overpriced, speculative and facing regulatory action.
In other words, Alibaba is not something I would speculate in at this point in time. Either long or short.
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