The Alibaba effect
This could well be the Google effect – ever so often an unrecognised ‘giant’ turns up. For those who do not know Alibaba – straight out of China to the West – dwarfs Amazon and Ebay put together!! What’s so great about that? This is a tremendous investment opportunity. Oops.. the moment I’ve said that, people began clutching their wallets – and preparing their bunch of plausible excuses: i) don’t have money ii) don’t have the time and iii) don’t have the mental resources. After all anybody who comes around touting a get rich quick scheme is ‘up to something’ – right?
If anybody got through all that on Alibaba. Have a look at other news items on Alibaba:
- Alibaba surges ahead of earnings.
- Jack Ma beats Ebay into submission.
- Alibaba shares could double by 2017.
Learn from Jack Ma
So what does all this mean. If Alibaba shares rises from say USD$ 100 to $200 in 2017 – some may be thinking “Good that’s 100%”. However, if one is thinking in spreadbetting terms that’s 10,000 points!!! And that’s 10,000 x a $1 bet – which is USD$ 10,000 for a one dollar or one pound (sterling) bet. It seems a good bet to me. Yes – by cultural standards in England all the hype leads to a high degree of skepticism. I’m not telling people to rush out there and make bets.
I’ll be betting for a limited loss of around £100. I think that’s better than me spending £100 on the National Lottery, which I spend twice as much in a year and probably only get back 5% if that much.
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