This Hedge Fund Manager Says 'Stay Away' From Alibaba
Lemelson Capital Management Chief Investment Officer Rev. Emmanuel Lemelson warned investors to “stay away from new issues” including Alibaba Group Holding Ltd (NYSE: BABA).
Lemelson told Benzinga that the sellers, which includes insiders and investment banks, “have a vested interest in selling to you at a price they know is above true value.”
Rather than take a chance on a stock with a limited public track record, Lemelson recommended sticking to stocks in the secondary market with a known history.
Lemelson said that with upwards of 10,000 stocks “to choose from on major markets, why resort to IPO’s with limited public track records” offered by banks and promoters “with interests that don’t align with your own?”
Alibaba closed Wednesday at $98.45, down 4.36 percent.
Ahead of its earnings report, Alibaba traded at $100.66 in the premarket, up 2.24 percent.
Kevin Riley and Brianna Valleskey contributed to this report.
Latest Ratings for BABA
|Jan 2017||Bernstein||Initiates Coverage On||Outperform|
|Jan 2017||Standpoint Research||Upgrades||Hold||Accumulate|
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