Is Alibaba still a BUY ?Now, from being ostracised by the Central government to being in the limelight after 3 years, we are now seeing Alibaba returning to stage once again and capturing the hearts of "love and hate" retail investors.
Those who had bought it around 200 price level back then would be relieved in some way to see the share price slowly inching back to their purchase price and their paper loss amount reducing. Hope this gives them a good night sleep.
There are many school of thoughts in investing and to say that one school is better than the others would be biased and self centred. There are factors like risk tolerance, time frame of investment, capital, knowledge of market, etc.
If you are in your mid 50s, would you want to risk say 10K to invest in this stock? Yes, if you believe in its growth story and you have a higher risk appetite and if the price falls back to 80 , you are OK and would not have sleepless night. It is too simplistic to say that people in this age category should invest in dividend stocks - a broad base of market categorisation.
However, if you are in your 20s but you are a thrifty little squirrel and have not heard of the stock market, fearful even to do paper trade, then it is wiser not to put even 1k in this growth stock. At less than 2% dividend, you are better off parking your funds in the government bonds.
So, to answer a straight YES or NO without considering the background of the investors would be putting the cart before the horse. Everybody situation is different and those who have bought are somewhat biased else they would not have bought it and those who think all China stocks are uninvestable would naturally stay away even this tech giant in China.
For me, I am riding on the rally and awaiting for it to pull back to 120-125 price level before accumulating. Please DYODD
