Alibaba: Re-Rating Catalysts Finally Kick In (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Chinese monetary stimulus is a strong re-rating catalyst. Dovish surprises and continued rate cuts and measures to encourage stock pledges and buybacks can support BABA stock and other Chinese equities.
• There are signs of a paradigm shift in market sentiment. Alibaba investor David Tepper is 'buying everything' China-related. The last time he said this was in 2010 for US equities.
• BABA stock valuation is still heavily discounted and attractive and is no longer in a value trap. There is a catalyst for a material re-rating.
• Relative technicals vs the S&P 500 is bullish, with further room for upside and hence outperformance.
• A rebound in Chinese retail sales data is something that I expect going forward. I am also watching the US Fed's policy decisions for clues on Chinese rate decisions.

Read the full article here.