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Why This PreMarket Prep Host Plans To Buy Back The Alibaba Shares He Sold

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Why This PreMarket Prep Host Plans To Buy Back The Alibaba Shares He Sold

The problem with Alibaba Group Holding Limited (NYSE: BABA) stock until now was the unknown, producer Spencer Israel said on Benzinga's "PreMarket Prep" show Monday.

The company was the subject of an anti-monopoly investigation in which Alibaba was issued a record $2.8-billion fine by Chinese regulators.

On Sunday, Morgan Stanley analysts said the fine lifts "a major overhang" on Alibaba and shifts the focus back to the company's fundamentals.

PreMarket Prep co-host Dennis Dick agreed with Israel, adding that the unknown was a worry for him as a shareholder.

Dick sold shares of Alibaba because of the looming investigation, but said he would be a buyer of pullbacks because "Alibaba is still cheap.

He plans to buy back the shares that he sold if he can get them around $230. The mega cap trade is on, and Alibaba is the big mega cap in China, he said.

See also: Why Is Alibaba Stock Surging Despite $2.87B Antitrust Fine?

BABA Price Action: Alibaba was up 7.88% at $240.96 at last check Monday. 

Image by Markus Winkler from Pixabay.

 

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