Thu 7/19/2018 22:39 ET
S&P 5002804.4911.220.40%BANKS470.774.941.05%OIL68.160.080.12%BITCOIN7460.1617.160.23%
Welcome Stranger!  Please sign up or log in to enable additional features.Sign Up | Mail | Log In
Forum - Wall Street Pit (Alibaba Group - BABA)    Stock Due Diligence for All

Msg Top | Msg List | < Prev | Next > | Post New | Reply | Privately | Search | Add BABA
From: luvb2b (Rep: 2080)Date: 10/12/2017 14:49
Forum: Wall Street Pit - Msg #2696172 - List BABA msgs Thread #673958689 (Rec: 0)
another baba backed ipo is coming - remember the bsti fiasco? been reviewing f1 for qudian, it's an online consumer finance company. the whole thing is very suspicious.

the basic idea is they get a fee and interest sharing for connecting lender and borrower, and they guarantee the repayment of the principal and interest.

here are a couple interesting red flags:

loans are all non-collateralized, meaning it's basically like a credit card. customers can also draw cash advances.

qudian guarantees all principal and interest repayment to the lenders, which are usually institutions.

they seem to have reserved a bit less recently than last year, inflating their financial performance. think of it like this, it's basically like capital one - but they only earn 4.5% on each loan (roughly) and take 100% risk of loss. whereas capital one can sell off receivables, charges a higher interest rate etc. how you make the capital one model work on 4.5% interest is beyond me.

after the offering all ceo (or chairman?) shares will convert to class b. each class b has 10x voting power of a class a. his combined vote will be 82%, meaning, the one guy runs the show.

i can't imagine how this ipo is going to swimmingly - it's a huge deal too - 37m shares to come around 20.

expect baba to break lower if demand is poor as i expect.

my daily motivational reading, what the high and mighty penny pumpers say about luv:

"any knowledge you currently have about trading, finance, accounting, etc... that i don't, are things i can fully absorb within a relatively short period of time if its really important to do so... on the other hand, i am quite certain that you are incapable of grasping even 20% of the knowledge i've gained in math, associated algorithmic coding, physical chemistry, solid-state physics, materials science and engineering over decades of study." 

"There are those who market trades, and there are those who trade markets.
There are those who follow marketers, and those who follow markets.
The marketers feast on their followers; the traders feast on the markets." -luvb2b

***Disclaimer & Disclosure***: I make no guarantee as to the accuracy or validity of information in this message. Messages posted reflect my own opinions and/or those of others, and are posted for entertainment purposes only. My messages should not be construed as investment advice. Always make investment decisions in consultation with your own financial advisor. Daytrading is not suitable for everyone. You trade at your own risk. Daytrading involves considerable risk and could result in significant losses, including losses in excess of invested capital. Any information posted here is meant for entertainment purposes only and should not be assumed to be accurate. It is expected that the readers of this information do their own research and due diligence when making trading or investment decisions. I may have long or short positions in any of the stocks that are mentioned, and these positions may change at any time.

What would you like to do? Message: Endorse | Bookmark | Report AbuseUser luvb2b: Reward | Watch | IgnoreBABA: Ignore

Msg Top | Msg List | < Prev | Next > | Post New | Reply | Privately | Search | Add BABA | About Us | Agreement & Disclaimer | Privacy | Twitter
© 1999-, Inc.