|The Ant Got Crushed, Buying Opportunity For Alibaba|
Nov. 4, 2020 6:30 AM ET
Long/Short Equity, Growth At Reasonable Price, Contrarian, Deep Value
* Ant Group announced the suspension of its blockbuster IPO in both Shanghai and Hong Kong, resulting in an 8.1 percent plunge on Tuesday.
* The suspension of the IPO was not due to some shenanigans discovered but the release of draft rules stipulating tightened online microlending standards.
* The new rules impact the entire industry, not just Ant Group. As an sector leader, Ant has an advantage to emerge from this debacle stronger than peers.
* Readers familiar with my coverage on Tencent would know it similarly suffered from regulatory tightening but has thrived in spite of the scrutiny.
* I argue that Alibaba's Tuesday plunge is a buying opportunity.