Hollllllly... There have been quite a few calls over the years about this from Chanos and other great minds, but this thesis based on recent earnings call is a career ender, Ali Baba blows Tesla out the waters in terms of Madoff accounting... Excellent read, read entire writing, he dissects it well. Just finished reading and dug more into it, I am mind blown right now https://deep-throat-ipo.blogspot.com/2019/05/babaan-earnings-call-without-discussing.html Softbank had 140 Billion Stake in Baba in 2018... Bigger they are, harder they fall! The fraud seems to be pretty serious, if this turns out to be true, this will have serious repercussions for chinese companies future listings on US Exchanges... Tesla bullshitting Level 5 Autonomous on a 35 Bil Mkt cap is one thing, Baba has 401 Bil Mkt cap. https://www.marketwatch.com/story/j...ties-for-chinese-business-licenses-2018-10-01
Ali Baba is the equivalent of Paypal + Ebay + Amazon added altogether. Two years ago they even launched a kind of "e-lending" service where people can get loans at much lower rates and lower fees via Alipay. The government had to force it to shut that service down because it was competing too much with the banks (majority of them backed by the state) and the banks were losing major money to Baba's "e-lending" service. At first Jack Ma, the CEO and the founder was defiant saying that he was not afraid of going to jail for what he was doing but at the end he had to back down and had to resign. Imagine a company big enough to get the government to be scared. It can commit all the "frauds" it wants and I will still invest in it. Chinese companies were notorious with its fraudulent financial reporting during the last 20 years but nowadays the number of fraudulent Chinese companies have been going down. And I find now the "shorts" are running out of Chinese companies to pick on to short. And Ali Baba is just the few Chinese companies still left. Quite a few Chinese companies who have successfully defended themselves against the "shorts" with their real solid performance and I am sure Ali Baba will be one of them IF the "shorts" dare to go after it.
Mkt Cap 386 today... Bloomberg articles shilling and praising Baba HK filing, means vicious sell-off happening soon for this fraud, trying to pump it for bag holders. On page 40 of earnings there is a $2.974 Billion accounting "Gain on the revaluation of assets" which was roughly equal to net income for the quarter. i.e.) If we exclude this gain, the business had no earnings from operations... Hahahaha https://www.bloomberg.com/news/arti...socialflow-twitter-business&utm_medium=social
Exacly! If $BABA were actually production $13Billion per/yr in legit Net Income...why would they want to dilute themselves by doing a $20B secondary? Don't make no sense. Deep Throat Blog is powerful. More interesting viewing: "The China Hustle"