Analysts are Bullish on Alibaba Shares - Updated

Shares of Alibaba, BABA, have stalled recently in its rally.  Shares touched $120 briefly, and have had a slight correction since.  However, this is not to fear because for one, shares are strongly ahead of its IPO price.

Furthermore, recent analyst actions show that there are many bulls out there.  Cantor Fitzgerald, HSBC, and Bank of America all have issued either buy or overweight ratings on BABA during the month of November.

It will be interesting to see how the year ends for the share price of Alibaba, but I would expect its share price to reflect positively if we see strong holiday sales.

Disclosure, I am long BABA.

Alibaba Earnings are Out - Good News

Alibaba, ticker symbol BABA, came out with earnings today that helped investors breathe a sigh of relief.  The stock has been a steady performer since going public, and today its results did not disappoint.  Mobile revenue grew by about 10 times the amount of the same time last year and earnings per share met the street estimates.  The stock is up decently today.   Disclosure, I am long BABA and recommend it.

Technology Stocks Offer Genuine Upside Potential Here

As we enter the holiday and Christmas shopping seasons, retailer stocks in the technology industry offer huge upside potential.  Online sales are expected to grow again at a pace faster than in-store sales.

As a result, the companies I expect to benefit from them including retailers such as Target and Best Buy, along with favorite gift card items such as Starbucks gift cards.  Also, I expect Alibaba, Ebay, Google, and Amazon to also have a strong end of the year.  Apple is another stellar performer and I would recommend all of these shares here.

If holiday sales outpace expectations, we will see a rally.  Ebay already warned about holiday sales about a month ago but hopefully we get a surprise to the upside.  I am long all of these shares except Best Buy.

Alibaba Ahead of Earnings - Expectations and Implied Volatility

Alibaba, ticker symbol BABA, is reporting earnings before the market opens tomorrow.  The street has high expectations, but not to worry because it is estimated that online Chinese sales will grow about 45% this year.  Alibaba has approximately 80% of the online market.

The options market is still implying about a 5% volatility from these earnings, despite the 3.47% current gain in BABA shares so far today.  I bought more BABA stock today, and expect that these earnings are going to be a blockbuster.

I believe that we have yet to see a big move in the stock, so far the gains and price swings have been minimal.  I expect that it will change starting with the earnings report and believe that Alibaba is in better position than Twitter and Facebook were for their first earnings annoucements as publicly traded companies.

Alibaba is a Buy - Undervalued Indeed

Today I finally initiated a long position in Alibaba shares.  I find the stock to be extremely undervalued and believe it is going to go to $120 per share in short order.  This could happen just with the earnings release in November, the week of the 17th.  We will see, but my money is where my mouth is now.

November 2014 Undervalued Stock Picks

To start with, shares of Alibaba are still undervalued at $95.76.  The shares were down to like $85 per share, and that was a superb time to buy.  I own no position in Alibaba but definitely recommend it going into earnings for short term profits by the end of November.  Those earnings will be around November 17, 2014 (BABA).

The shares of Directv and Lorillard (DTV and LO) are undervalued because of underpriced premiums compared to market price if the deals go through.  This, in my opinion, is an oversight by the market.  I own shares in both companies but definitely find them to be great bargains.  With Lorillard, you also get a high dividend yield.

For smaller companies, top picks of mine include Cliffs Natural Resources (CLF).  I do not currently own shares of it and would wait for a slightly lower entry point here.  Neutra Corporation (NTRR) is a top pick of mine for an undervalued penny stock and I own shares of it.  Fannie Mae (FNMA) is another top pick for a lower priced stock.  All of these have potential for upward momentum short term in the next few weeks, and I am long FNMA.