Hmm.. really? I think you've got that backwards.... "Got your pacifier up the wrong hole again. To fat for your trading skirt, lol. If you act like an idiot, talk like an idiot, maybe you are an idiot! And you should be treated as one, you deserve it. And you asked for it." This is typical troll behavior... and you've been doing that for quite a while in several threads...
https://www.cnbc.com/2019/05/27/alibaba-reportedly-eyeing-hong-kong-listing-to-raise-20-billion.html Uh-oh... Dilution is never good, Chuck might of been spot on, which was known for quite some time about the counterfeits being sold on Baba as long as they were made in China, and that they use Bernie Madoff accounting. A little early Chucky, but it seems this one is going down. It is owned by the cpp since end 18, when Jack ma signed away ownership rights to 5 cpp members, so I see them trying to pump it... American companies and firms will likely rush for the exits if they actually go through on Share Dilution in NY to post it in HK... They don't even pay dividends
Nice timing on Yahoo's part eh? F'n comical. ------------------------------------------------------------- The Alibaba-Yahoo Saga Is Ending. A Major Holder of Chinese Web Giant Will Liquidate. Altaba , whose chief asset is a $50 billion stake in Alibaba Group Holding , plans to liquidate and distribute its assets to shareholders in an effort to deliver the most value to its own investors. It's a rare situation. Companies with $39 billion market values rarely decide to go away. The planned move culminates a process that began when the former Yahoo sold its core internet business to Verizon Communications in June 2017, changed its name to Altaba (ticker: AABA) and then began liquidating or distributing assets, including a stake in Yahoo Japan and part of its interest in Alibaba (BABA). The action, announced late Tuesday, wasn’t a surprise. Altaba shares were off 94 cents to $73 in morning trading, while Alibaba stock was off $2.68 to $179.06. Altaba holds 283 million shares of Alibaba, an 11% stake, making it the second-largest holder behind Japan’s SoftBank. Editor's Choice Altaba trades at a roughly 26% discount to the value of its assets, and the liquidation process is designed to deliver as much of the value of those holdings as possible to investors after Altaba pays U.S. income taxes on the sale or distribution of stock to holders of the Alibaba stake. Altaba said in a news release that it could make total distributions to holders of $76.62 to $79.22 a share based on a recent Alibaba stock price of $177 a share. That total is above the current Altaba stock price, but the entire liquidation process could take several years. Investors are discounting that potential total value given both the timing and the risk that the distributions could be smaller than expected. Still, investors, should get a sizable amount of money in either cash or Alibaba shares during 2019. The company said it aims to make an initial distribution to holders of between $52.12 and $59.63 a share in the fourth quarter. Altaba CEO Tom McInerney said on a conference call Wednesday morning that a second distribution could come in the fourth quarter of 2020 after a Delaware court clears the company’s plan of liquidation and dissolution. Altaba’s market value is $39 billion. Barron’s has written favorably on Altaba as an inexpensive way to invest in Alibaba. Altaba stock remains a proxy for Alibaba, but is now also a play on the outcome of the liquidation process. Many holders of Altaba had hoped that the company would be able to sell itself in a tax-efficient transaction to Alibaba, but Alibaba hasn’t wanted to execute such a deal. McInerney said on the conference call that Alibaba has “indicated to us directly and publicly in different forums” that it is “not interested in pursuing a transaction.” He said Altaba would reconsider its liquidation plans if Alibaba’s view changes. Against this backdrop, Altaba determined that best course was to move to liquidate the company and distribute its assets to holders. Altaba will pay U.S. income taxes on the sale or distribution of its sizable stake in Alibaba, the Chinese e-commerce giant, which has a market value of almost $500 billion. Altaba has benefited from the cut in the U.S. corporate tax rate to 21% from 35% because that has reduced the taxes payable on Alibaba stock sales or distributions to Altaba holders. McInerney said in a statement: “Since June of 2017 we have taken a series of aggressive actions designed to drive shareholder value and these have yielded measurable results as our trading discount has narrowed and our stock has meaningfully outperformed a composite of its underlying assets. The right next action for shareholders is the Plan we are announcing today as it represents the most definitive step, generally within our control, that we could take to reduce the discount to net asset value at which our Shares trade.” He noted that Altaba has outperformed Alibaba by 9% since June 2017, reflecting shareholder-friendly steps, including buybacks, that Altaba has taken to narrow its discount to its net asset value. Altaba will have reduced its share count by more than 40% since June 2017 to an estimated 519 million shares after repurchasing all the stock the board has authorized it to buy back. In a client note, New York tax expert Robert Willens wrote that there likely will be no tax-efficient disposition of the Alibaba stake by Altaba. He estimates that the entire liquidation process could take several years to complete because Altaba will need to hold back a reserve against possible taxes, including those that could be imposed by China. On the conference call, McInerney said he didn’t expect that China would seek to impose a tax related to the sale or distribution of the Alibaba shares under a statute known as Bulletin 7. Since June 2017, there has been considerable market speculation about potential tax-efficient deals that Altaba could execute to monetize its Alibaba stake but in the end, Altaba decided to go with a straightforward plan of liquidation. It’s unusual for such a big company to do away with itself, but Altaba’s situation is unusual as well. Yahoo received a stake in Alibaba more than a decade ago, before Alibaba was public, and it has appreciated enormously, way exceeding the value of its former internet business. When Yahoo moved to sell its internet operations to Verizon, McInerney replaced Marissa Mayer as CEO with the mandate of maximizing the value of Altaba. McInerney and the small team of Altaba executives have done a good job at doing that. The liquidation of the company is the final step in the process. In the end, Altaba holders likely will get the best outcome possible given the circumstances, although many had hoped for more. Write to Andrew Bary at andrew.bary@barrons.com
Thanks for reminding me, I forgot this thread existed. https://deep-throat-ipo.blogspot.com/2019/05/babaan-earnings-call-without-discussing.html