Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Tom Winnifrith Bearcast 6 January: Alibaba looks like a red flag slam dunk sell

By Tom Winnifrith

6 January 2016 07:49

More:

I could not sleep last night so spent several hours looking at filings by Alibaba (US:BABA), the world's largest IPO. They seem red flag strewn and I would have this one down as a slam dunk sell for 2016. There will be more on this to follow but I am just putting a marker in the sand. Back in the UK I look at Gulf Keystone (GKP), African Potash (AFPO) and LGO Energy (LGO)

This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

Comments

Bearfacts

6 January 2016, 09:13

Just to clarify it not million tons re African potash, it metric tons. It latest is 20,000 metric tons.
Does seem odd about how and when they getting paid!
I reckon if you dig deeper all your find is more fertiliser ho Ho Ho ……
AK47

6 January 2016, 10:49

Nice one Tom. Alibaba has been pimping them segways and the vast majority are dodgy and have faults with them. They make copy of UK plugs and are a safety hazard. Those who bought Alibaba shares thinking they were a good investment, are stupid.Counterfeit goods all over it. I agree it is a sell.
turbograndad

6 January 2016, 11:56

Tom, I checked out this version of Alibaba at the pre IPO, the original version with all the assets in China, and has Soft Bank Japan, and Yahoo as its biggest original shareholders 65% between them, is not this .
It would not list in London, or after in HK, but instead finally listed in New York with more on their terms, which I did’nt like, So it is a pale facsimile, and name only jobby, with IPO ramp, with the yanks to get a bigger offering, all furcoat and no knickers, I did’nt get in never mind out.
Can’t remember the technical term for “ all furcoat and no knickers.”
Mr Don't Be Silly

6 January 2016, 12:17

Alibaba is not JQW…
Tom Winnifrith

6 January 2016, 13:42

Mr Dont be silly

Indeed it is not, I think that is s statement of the bleeding obvious you make but there are a forest of red flags here to get stuck into

T
wildrides

6 January 2016, 17:26

Oh dear Whining Froth …….I need you to beat LGO down to about 0.18p so I can get another good entry ……….. your not trying hard enough …………the fall so far is just going down inline with WTI oil price. Beat harder …… you know you want too.
By the way the 2014 well output for LGO that you quoted today was for initial flow rate . The well was put on choke for production to make it last a long while ………. do try to keep up old chap . The assets are fine ……….. they start off at a settled 90% and fade away to 10% or less at thirty years old . It has plenty of new virgin ground to drill that will produce a decent and cheap output . This aint a massive capex North Sea platform Jobby . Its just about laying a concrete slab in the jungle , stick a tiny rig on it and drill a few metres through loose sand . The declines you are calling steep are just for the old wells that have been worked over . They are thirty years old so they were not ever gonna be mega . Its all about the virgin ground next door to them which has been surveyed and is ready to exploit .
Mr Don't Be Silly

6 January 2016, 17:28

Obv Not..

Tara might like you in this….

http://www.alibaba.com/product-detail/2015-new-fashion-Brown-sexy-fetish_60365813135.html

If you buy a couple of containers from ‘Drop Shop China’ you can ask the ladz from ‘The Den’ to foot your bill… assuming they do not have their heads up the cloudy things. All you need is a USP.