Tag Archives for " Alibaba "

Yahoo drops its plan to spin-off its Alibaba stake – Oops!

After almost a year since announcing the planned spin-off of its remaining holding in Alibaba, Yahoo’s board of Directors “after careful review.. has unanimously decided to suspend work on the pending plan”. Tax reasons are cited for the volte-face, in that the IRS (as we reported only last week) were unimpressed by the whole scheme […]

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Yahoo – last one to leave please turn off the lights!

So having failed to rejuvenate the core and divert attention to crystallising value from selling down the peripheral assets, Marissa Mayer and the Yahoo board are now left with the one last option, sell the rump. But with under $5bn of sales and barely profitable, what might it be worth and does the proposed spinoff […]

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JD.COM – building a scale advantage or just buying profitless market share?

The world seems to be in love with JD.COM. After the concerns about the possible headwinds from a slowing Chinese economy that had been dragging down sentiment and shares in rival Alibaba, JD.COM’s results assuaged many of these fears. As well as reporting a +52% YoY increase in Q3 revenues and +72% rise in gross profit […]

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Yahoo unveils ‘SpinCo’. Well it can’t be plainer than that surely?

Yahoo Inc: New management has finally accepted what the markets have been trying to discount for some time; that with Jerry Wang’s legacy investments in Alibaba and Yahoo Japan, Yahoo was beginning to look like an investment trust. New CEO, Marissa Marr’s decision to split off the remaining (15.4%) stake in Alibaba into a new […]

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Beware fake arbitrages on Yahoo – Alibaba!

For an arbitrage opportunity to exist, asset classes need to be fungible (deliverable against each other), so anyone selling you a scheme to “arbitrage” an apparent pricing disparity between related, but non-fungible, assets maybe selling you a dud.   When I see investor research by banks, who should know better, promoting “the Yahoo arbitrage trade” […]

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IPO: Market valuing Alibaba as if it were a normal US tech Co!

I am surprised! Having cleaned up the reported numbers a little (eg including stock comp and intangible amortisation – excl goodwill), and applied a broadly average growth discount trend, the Alibaba NPV on the WYT growth discount model comes within 5% of the post IPO price – nb this already adjusts for forward valuation horizon […]

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