Playlist: BABA:xnys

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#SinglesDay - What does this tell us about the Chinese economy?
Alex Forrest Whiting
11 November 2015 at 11:25 GMT
#SinglesDay - Can Alibaba deliver what investors want?
Peter Garnry
10 November 2015 at 8:54 GMT
Alibaba - just how worried should investors be?
Peter Garnry
24 September 2015 at 7:36 GMT
Why investors should still believe in Alibaba
Alex Forrest Whiting
14 August 2015 at 7:24 GMT
Berger: Alibaba "scares the pants off" the bears
Serge Berger
18 May 2015 at 6:48 GMT
Earnings Season: Yahoo! unlikely to deliver Q1 cheer
Peter Garnry
21 April 2015 at 7:07 GMT
Is this Alibaba's Facebook moment?
Peter Garnry
19 February 2015 at 13:27 GMT
Taming the dragon - how to trade Chinese stocks
Pauline Loong
10 February 2015 at 8:12 GMT
Garnry: Don’t dismiss Alibaba
Peter Garnry
30 January 2015 at 8:26 GMT
NASDAQ week: 10 top tech stocks
Alex Forrest Whiting
24 November 2014 at 14:35 GMT
Like Facebook? Why you'll love Alibaba
Peter Garnry
05 November 2014 at 13:38 GMT
What you need to know about Alibaba's results
Alex Forrest Whiting
04 November 2014 at 8:29 GMT
Yahoo, Apple, Google – the battle of the Tech giants
Alex Forrest Whiting
22 October 2014 at 13:53 GMT
Video / 19 February 2015 at 13:27 GMT

Is this Alibaba's Facebook moment?

Peter Garnry
Alibaba, the largest e-commerce company in China, begins the Chinese year of the sheep by giving investors plenty to bleat about. The share price has fallen by around a third since the post IPO high. Concerns include weaker than expected Q3 sales figures released last month and a legal tussle with the Chinese regulator.

Saxo Bank's Head of Equity Strategy Peter Garnry says: "Of the 81 global stocks with a market value over $100 billion, Alibaba's are this year's worst performer, down 16.6% compared to an average mega-cap gain of 4.4%."   

Peter has always been bullish on Alibaba but explains why he now sees USD 85.00 as a crucial level: "The best way to play Alibaba given its high relative valuation and the share price balancing on a knife's edge just above that likely-to-be crucial level at $85, is through call options (so the downside risk is limited). Our preferred trade is to buy the March C87.5 at $2.46, which is a 2.8% premium to yesterday's close, as this option is in the money above $90 (the potential breakout level on the upside), and has the loss capped down to the $85 level which again is the potential downside risk level." 


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