Alibaba Serves Up Another 48 Million Shares to Insiders

After your pension paid $90 a share of alibaba, alibaba issued another 48 million shares the following Monday, at $68 each.

In particular, it was reported by CNBC that numerous hedge funds were allocated miniscule amounts of Alibaba Group Holding Ltd (NYSE:BABA) stock in comparison to the amount requested. Instead, preferential treatment seems to have been given to investors that had longer ties with the company, including early backers, who were given larger dollops of shares as a reward.

So now those insiders will sell out and pocket the difference between their $68 price and whatever your stock falls to before the insiders can unload and book profits.  The Chicom press gives a more fair view:

"As the irrational passion for short-term trading gains dies down, Alibaba's share price will adjust and recede to around $80," said Hong Hao, the chief strategist at Bocom International Holdings, to China Daily online, adding that a new round of investors will digest the stock and seek buying opportunities in the secondary market.

The USA stock exchange is supposed to be about wealth creation, but clearly it is about wealth-transfer.  These guys came to USA because we allow front-running and regulators captured by the regulated.  It astonishes me to hear people say "we need more regulation!"  There is no field more regulated.  The trick is to get rid of the regulators, then the regulated have no one to pretend to be in charge.  That's right, then you'd have to develop your ability to judge.

Check your pension statements to see how much BABA they bought at what price.

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