Noelle sells BABA 59.24: Fundamentally, lock-ups are trading restrictions that prevent insiders, or those holding majority stakes in the company from selling their shares for a given period of time following an IPO.

Unfortunately, for Alibaba, the lock-up expiration has come at a time when the company stock is under considerable pressure on several accounts. The lock-up had placed restrictions on insiders selling their holdings for a year. The stock that attracted a stream of investors from all over the world upon its debut, has recently witnessed a massive outflow of money, on a number of concerns that are threatening to stall any recovery prospects. It trades at $92 per share instead. Going with the tide is not always the right strategy.


Cathy:
We mention the hedge fund activity concerning Alibaba because following hedge funds can generate alpha.

Aracely:
Given that top hedge funds do exhaustive research, the hedge funds would never have invested in Alibaba if the numbers were so obviously incorrect.

Terica:
Faster growing companies deserve higher valuations.

Kristan:
In the column, Laing used a forward EPS of $2.56 per share instead of the consensus analyst 2016 EPS estimate of $3.37 per share.

Rosaline:
Inc. issues a policy statement on its Alibaba stake.

My:
However, these considerations purportedly attract massive taxes.

Dominga:
The latter is keen on expanding its current holdings in the industries and it would likely sell its stock only to fund further acquisitions that interest the group.

Laquita:
Following which, the other major investor in Alibaba Group Holding, Japanese investment firm, Softbank will also wait to realize funds from this investment.

Alycia:
That is roughly 63% of one of the largest IPOs are now free to be sold.

Megan:
The company which has been among the dismal performers on the US trading floors has yet another financial challenge to battle.

Alibaba Group Holding Ltd. (NYSE:BABA)
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