Entering text into the input field will update the search result below

Don't Worry About Delisting, Alibaba Is A Buy


  • Alibaba's shares came under pressure due to a bill that could theoretically lead to a NASDAQ delisting.
  • Delisting is not very likely, and it would not matter too much in the long run anyways.
  • Alibaba operates a very attractive business and generates strong growth.
  • Relative to the growth that Alibaba generates, shares do look attractively priced.
  • This idea was discussed in more depth with members of my private investing community, Cash Flow Kingdom. Get started today »

Article Thesis

Alibaba (NYSE:BABA) has been in the news a lot recently, due to the renewed China-US tensions and some moves by the US administration that could potentially lead to a delisting of Alibaba and other Chinese stocks (FXI) on American stock exchanges. This is, however, not too much of a worry we believe.

Meanwhile, Alibaba continues to grow its business profitably, more and more becoming a gigantic and highly profitable conglomerate in the world's most populous country. We see it as a more attractive, less expensive alternative to Amazon (AMZN), and due to its dominance in China, the long-term outlook for Alibaba's shares is positive.

Bull and bear, bullish and bearish on Alibaba Source: Seeking Alpha's image bank

Politicians' Talk About Delisting Alibaba & Co

Due to the COVID-19 pandemic and other factors, tensions between the US and China have flared up again over the recent past, following the positive deescalating impact of the phase 1 trade deal at the beginning of the current year. This has resulted in more aggressive rhetoric on both sides, and ultimately the US Senate passed a bill that would impose more strict regulation on Chinese companies that are listed in the US.

Forbes summarizes the bill like this:

The Senate passed a bill on Wednesday that will force Chinese companies to abide by the same rules as American (and Brazilian, and Mexican, and Russian, etc) listed on New York Stock Exchange and Nasdaq.

Part of the action includes delisting companies controlled by the government, such as PetroChina (PTR).

At first sight, this does not seem like an unreasonable proposal -- why would Chinese companies be treated differently than companies from other foreign countries? There is, however, an implication that the threat of delisting could be used rather liberally by US administration on the basis that many, or even most Chinese companies are more or less

ChartData by YCharts

ChartData by YCharts

ChartData by YCharts

ChartData by YCharts

Is This an Income Stream Which Induces Fear?

Data verified by Etrade.

The primary goal of the Cash Flow Kingdom Income Portfolio is to produce an overall yield in the 7% - 10% range. We accomplish this by combining several different income streams to form an attractive, steady portfolio payout. The portfolio's price can fluctuate, the income stream not so much.

This article was written by

Jonathan Weber profile picture
Leader of Cash Flow Club
The Investment Community where your "Cash Flow is King"
According to Tipranks, Jonathan is among the top 0.5% of bloggers (as of January 10, 2022: https://www.tipranks.com/bloggers/jonathan-weber).

If you want to reach out, you can send a direct message here on Seeking Alpha, or an email to jonathandavidweber@gmail.com.


I work together with Darren McCammon on his Marketplace Service Cash Flow Club.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.