Alibaba ipo

[bladez87]

How to buy the ipo?

 

[Shiny Things]

How to buy the ipo?

You basically can't.

There are six banks leading the IPO: CS, Deutsche, Goldies, JPM, Morg Stan, and Citi. This is an incredibly hot IPO - they're closing the books early and increasing the price range, which they wouldn't be able to do if there wasn't huge demand - and that means the banks can give the IPO shares out to their favourite clients.

And that means you have to be a client of one of those six banks, and a VERY lucrative client at that. If you're a private bank client, you might get a tiny slice if your relationship banker likes you and has enough clout to lobby his higher-ups for a slice to give out to his clients. If you're a regular wealth-management client (or, worse, a regular client) you're not going to get anything.

For what it's worth, I have a (small) account with JPM, and I've had MS pitch to me pretty hard before, dangling IPO shares in front of me if I bring my account over. I haven't heard a peep out of either of them about Alibaba, which makes me think that small investors like me aren't going to get squat. It's all going to the big guys - the Fidelities and Blackrocks.

Now, there is a semi-sort-of-back-door way of doing it, and I'm going to mention it here because if I don't some smartass will pipe up and say "hey you forgot this!" and make it sound like a good idea. Yahoo and Softbank both own big chunks of Alibaba - they're selling some in the IPO, but they'll still own a bit. So, technically, if you own Yahoo, about 10-20% of what you own is actually the value of Yahoo's stake in Alibaba.

That said, the other 80-90% is miscellaneous Yahoo rubbish. So it's entirely possible that even if Alibaba screams higher on IPO day, that Yahoo or Softbank might close lower, just because the companies are so much more than just their Alibaba stakes.

So don't get any ideas about buying Yahoo or Softbank as a second-order punt on the Alibaba IPO. This is a classic muppet trade, and the odds of it making you money are basically no better than a coin flip.

 

[frenchbriefs]

more than 10 or 20% actually....yahoo is a worthless company,their 28% stake in alibaba is probably worth more than yahoo itself assuming the predicted IPO valuation is 160 billion.yahoo invested 1 billion,they stand to make 40 something billion.

they promised to pay out the alibaba stake sales to shareholders.....40 billion can pay dividends for a long long time.think about it.....a similar sized company to Yahoo would be Singtel.....yahoo has a market cap of 40 bil....singtel has a market cap of 64 bil and a operating profit of 3.2 bil a year(fantastic profit margins)......40 billion is like 13 years of operating profit for singtel,imagine 13 years worth of singtel dividends coming ur way.

suddenly yahoo looks like a hot young stud that wants you to call him maybe...

 

[Mancunian2]

more than 10 or 20% actually....yahoo is a worthless company,their 28% stake in alibaba is probably worth more than yahoo itself assuming the predicted IPO valuation is 160 billion.yahoo invested 1 billion,they stand to make 40 something billion.

they promised to pay out the alibaba stake sales to shareholders.....40 billion can pay dividends for a long long time.think about it.....a similar sized company to Yahoo would be Singtel.....yahoo has a market cap of 40 bil....singtel has a market cap of 64 bil and a operating profit of 3.2 bil a year(fantastic profit margins)......40 billion is like 13 years of operating profit for singtel,imagine 13 years worth of singtel dividends coming ur way.

suddenly yahoo looks like a hot young stud that wants you to call him maybe...

Yahoo can spend the windfall on worthless acquisitions, 40b can be gone pretty fast

 

[Tuckie]

a fool and its money are soon parted.

 

[frenchbriefs]

Yahoo can spend the windfall on worthless acquisitions, 40b can be gone pretty fast

yeah probably...the funny thing though,yahoo and singtel have similar market cap,but yahoo share price is $40 but singtel is only $4.does that affect the dividend output?

 

[SpinFire]

The incredibly high demand makes it exciting to see how high Alibaba will go on the first day, and first week of trading. Trade starts this Friday right?

 

[lalalalalala]

The incredibly high demand makes it exciting to see how high Alibaba will go on the first day, and first week of trading. Trade starts this Friday right?

think alot of people will flip within first few hours

 

[archcherub]

think alot of people will flip within first few hours

yeah i would like to hold Alibaba in the long term.. (anyone else think the same?)

and was wondering if its a good idea to snatch up any alibaba stocks in open market when the market opens or wait for the dust to settle and for the prices to drop first to grab at a bargain (just like facebook when it first debuts.)
what do u guys think?

 

[lalalalalala]

yeah i would like to hold Alibaba in the long term.. (anyone else think the same?)

and was wondering if its a good idea to snatch up any alibaba stocks in open market when the market opens or wait for the dust to settle and for the prices to drop first to grab at a bargain (just like facebook when it first debuts.)
what do u guys think?

i predict open high then after that laosai. thats when you go in.

 

[antonpoh]

The incredibly high demand makes it exciting to see how high Alibaba will go on the first day, and first week of trading. Trade starts this Friday right?

Friend say IPO will start trading at US$68.

 

[lalalalalala]

Friend say IPO will start trading at US$68.

People who got the capital and contacts will hoot and sell once it opens. Then buy back at a lower price within the week. This one same flipping iPhone but at a much higher lvl

 

[focus1974]

Wow!
I will punt Alibaba IPO that night!
Trade of the Month!

 

[SpinFire]

Friend say IPO will start trading at US$68.

Yeah, pricing range increased from US$60-66 to US$66-68. Probably will be priced at US$68.

 

[SpeedingBullet]

Yeah, pricing range increased from US$60-66 to US$66-68. Probably will be priced at US$68.

lol maybe intraday might hit $80 or even $100 then crash back to IPO price . Or maybe it'll just stay at IPO price.

 

[victorlht88]

Beware: Alibaba IPO isn

 

[archcherub]

Beware: Alibaba IPO isn[url]

ur url went missing... i help u link it.
[URL="http://www.marketwatch.com/story/beware-alibaba-ipo-isnt-really-selling-alibaba-2014-05-07?dist=beforebell"]http://www.marketwatch.com/story/beware-alibaba-ipo-isnt-really-selling-alibaba-2014-05-07?dist=beforebell

Edit:- my bad... the link didnt work earlier, but after refreshing, realise original link works... my mistake.

anyway baidu has been using the same structure, so nothing new there. there is indeed a legal risk, if the china govt declare such a link illegal. in that case, the chinese govt would be shooting themselve in the foot too.
not a big legal risk to me, but still a risk...

 

[wondrdoggie]

You basically can't.

There are six banks leading the IPO: CS, Deutsche, Goldies, JPM, Morg Stan, and Citi. This is an incredibly hot IPO - they're closing the books early and increasing the price range, which they wouldn't be able to do if there wasn't huge demand - and that means the banks can give the IPO shares out to their favourite clients.

And that means you have to be a client of one of those six banks, and a VERY lucrative client at that. If you're a private bank client, you might get a tiny slice if your relationship banker likes you and has enough clout to lobby his higher-ups for a slice to give out to his clients. If you're a regular wealth-management client (or, worse, a regular client) you're not going to get anything.

For what it's worth, I have a (small) account with JPM, and I've had MS pitch to me pretty hard before, dangling IPO shares in front of me if I bring my account over. I haven't heard a peep out of either of them about Alibaba, which makes me think that small investors like me aren't going to get squat. It's all going to the big guys - the Fidelities and blackrocks.

Actually JPM and MS being book runners for the IPO are legally not allowed to mention or even pitch alibaba or yahoo or SoftBank to you officially. They are only allowed to take orders and cannot answer any questions. Unofficially of course they can answer questions. Basically any recorded conversations and paper trail they cannot mention. They could not even pitch a yahoo eln to me, unless I initiate.

Anyway, I put in an order for alibaba. We'll see how good a customer I am to my bank. Haha! They didn't give me squat for FB. But the rm told me, if you want 50k worth, you better ask for like 200k or more. Good luck to me!

 

[davidpasstp]

Yahoo can spend the windfall on worthless acquisitions, 40b can be gone pretty fast

Agree.. Yahoo is crap. even marissa has been unloading her shares.

 

[daylight]

tomorrow night is the night for alibaba !!!