Jim Chanos has said for a long time that Alibaba is a smoke and mirrors funhouse of accounting comedy. Apparently, the SEC is delving into the great Chinese company, curious as to the accounting of their ‘Singles Day’ nonsense.
For those uninformed, Jack Ma, CEO of Alibaba, created the holiday to celebrate people who eschewed family and marriage, classic Orwellian horseshit of the very first magnitude. As such, the enslaved Chinese are propelled to buy cheap goods in droves that day, mainly through BABA, who grossed $14 billion in sales on that day alone.
The SEC wants to have a peak under the hood.
“The SEC advised us that the initiation of a request for information should not be construed as an indication by the SEC or its staff that any violation of the federal securities laws has occurred,” the company said. “This matter is ongoing, and, as with any regulatory proceeding, we cannot predict when it will be concluded.”
Shares of BABA are off in early trade.
Alibaba and the forty thieves in China.
That cat looks straight from The Deer Hunter.
Investing in anything Chinese is a bad idea. Swimming with sharks.