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:

  1. Alibaba surges ahead of earnings.
  2. Jack Ma beats Ebay into submission.
  3. 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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