The largest Buyback of Chinese stocks: Alibaba $25 billion!
On March 22, Alibaba announced:
Increase the scale of stock repurchase from $15 billion to $25 billion.
It is reported that:
As of March 18, 2022, Alibaba has repurchased 56.2 million American depositary shares, valued at approximately $9.2 billion. This time, the repurchase scale was increased to US $25 billion, setting a record high for the repurchase amount of China Stocks, reflecting Ali's confidence in sustained growth in the future.
Some analysts said:
China concept stocks are at historically low levels, and repurchasing stocks will stimulate stock prices to rise, and a large-scale repurchase of China concept stocks may be about to begin.
Veteran @Violence_Panda says:
The rebound of Chinese concept stocks is not short-term, but a long-term "value return".
Other related reading:Buyback hit $1 trillion: Benefit to the Stock, and to the market.
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Finally, let's talk:
- Do you think Ali can continue to buy? Is this rebound of China Stocks long-term or short-term?
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Have u any wool?
Yes sir, yes sir,
3 bags full.
1 for the master
1 for the dame
& 1 for the little girl🌸who lives down the lane.Go $Alibaba(BABA)$ Go!🐎 long term investment
No matter how much share buyback, it will eventually slowdown [Glance].
I think Chinese stocks rebound is a short term thing=I maybe wrong
Buybacks seem to be very much in vogue these days but Alibaba's recent announcement that it would buyback USD 25 billion is the largest in a Chinese ADR!
It signals to investors that Alibaba has confidence in its business, is profitable and has the funds to do so. It also seeks to reassure investors through what has been a rough ride for Alibaba as its share price has tanked more than 50% so far.
Alibaba's massive buyback also increase earnings per share (EPS) by reducing the number of shares outstanding. Overall this is a brilliant move by Alibaba and investors have shown their resounding approval by the jump in its share price.
@Mainstreet_Trades The largest Buyback of Chinese stocks Alibaba
@TigerStars
BUY NOW WHEN CHEAP
@Mainstreet_Trades
@Niki2307
@Venus_M
@Kaixiang
@DiAngel
@Joker_Smile
Based on previous two shares buy back of 4bil and 5bil, it's given a boost to $Alibaba(BABA)$ share price, but only short-term and then downtrend resumed. See graph from Bloomberg below. Remained to be seen if this latest 10bil buy back, being largest coupled with likely ending of regulatory crackdown would be enough catalyst to reverse the downtrend.
Chinese concept stock as sector using Golden Dragon China Index HXC as proxy, price is just near top of a long downtrend channel since crackdown Mar 2021 on Daily chart (see below). If price could break out of channel and aim for 200MA (blue trend line) then downtrend would reverse and rebound would be long-term. For now, outlook is unclear, need to be patient, see how price action develops over next few weeks.
$阿里巴巴(BABA)$ 当然有回购股票的现金储备。根据最近一个季度的报告，即使是25BIL，这也只是不到其64BIL累积现金的40%。
回购股票是微软、梅塔和苹果等美国科技巨头提振股价的成功策略。因此，看到高增长的中国概念股并不令人意外，$腾讯控股(00700)$ $小米集团-W(01810)$ 也跳上回购列车，宣布更大规模的购买。投资自己来提高价格也是增强投资者信心的一种方式，他们可能会涌回中国股票。加上旨在保持市场稳定的政府监管机构，这些可能只是推动该行业价格再次上涨的燃料。
The increase of stock repurchase for $Alibaba(BABA)$ could imply tat the company is confident in their biz and they hv the Cash to buy back especially when the stock value is low compared to its ATH …. the rebound of the stock can be short term but the effect could be long term .... [Thinking] [Observation]
Buyback at an undervalued price is a great capital allocation that will benefit $Alibaba(09988)$ shareholders. And they do have the cash to support the move. It is also a signal that they believe the current price doesn't reflect their intrinsic value and future potential.
I think can buy now. Float cap is only US$190 billion and Alibaba has $25 billion of sharebuyback program. This means at current prices it will buy back 12% of its float. Alibaba is throwing down the gauntlet against shorters