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hey welcome back to two superu Trad socks I'm Dylan and I'm Vinnie and holy crap has been a freaking crazy month for us Alibaba shareholders we're going to talk about another publication that came out in the last few days from Alibaba updating their stock buyback program which is the thing I bought the entire company for right um perfect so my main man Michael bur you remember this is his top position most recently 13f filing we should get another one of these in like another 40 days or so um we have a little bit of ways to go before we find out if he closed out his positions at the end of the you know this most recent fiscal quarter or not unfortunately there there is a 45 day lag in reporting and stuff like that I gave you a price where I thought maybe it was you know a reasonable sell point but you know we all have our own thing and he's a much more active Trader than I am so who knows if he's still holding it quick question but two things this is an update from just last week where we also did a a sheer buyback how they're making them visible every day yeah yeah yeah exactly so this is n the daily this is the quarterly number remember we were getting that before we started getting the Hong Kong exchange daily numbers and then second thing if we sound extra sexy it's cuz we're both sick sorry guys but you know sounds good yeah somehow the virus you know was able to be passed on the computer um so 40% the last month just bananas numbers but you know when you zoom out you start to see things that are a little bit crazier so up 53% year to date which is awesome right like U most of that's happen right here at the end though but I this chart right here is rather sobering yeah you know this giant Spike here correlates with this little blip yep we have quite a long way to go to get back to where we were used to be trading a couple years ago so this is from macr Trends this is the outstanding shares for Alibaba on a quarterly basis um and as they got more and more aggressive with their share buyback program here we started to see like a nice downtrend U begin to develop in in the total shares outstanding which is what I love to see they've been putting out this press release now at the beginning of or at the end of every quarter updating what they did in the most recent quarter updating shares outstanding and how much money they spent on BuyBacks over the past three months so the the dollar amount they spent over the last three months right here is 4.1 billion all right it's a slight decrease from the prior couple quarters we had 4.8 and 5 uh eight uh 4.8 and 5.8 billion um but still above the the level before like Joe Sai was really heavily involved in the Alibaba management and I really I think he's the person we have to probably give credit to for delivering this this cash flow back to shareholders um you know if you look at the total shares outstanding they really weren't making a whole ton of progress despite this like two billion dollars per quarter in share valb backs until all of a sudden here over the the last year you know share price was pretty low and they started significantly increasing their share buyback pace and also decreasing the amount of employee stock options they were giving giving more cash bonuses so you've seen the number of shares outstanding come down pretty briskly here right which nice to see sexy numbers yeah and don't forget that they still have I think it's hidden right behind here yeah 22 billion dollars in share repurchases authorized in the current program um and you know I wouldn't be surprised if they they increase that I this is me going out on the limb here but at the next qu earnings I think we may see an announcement of additional money being brought to that share repurchase program which would be cool um to give you a little context of scale here I did my best attempt at putting what the ball would be on macr Trends going forward here um to show you you know that this trend is definitely still you know keeping Pace rather significantly in in terms of reducing the share outstanding I want to say they give you the number um I don't know if I mentioned it or clipped it here um but it was like 2.1% the total outstanding shares in like the one quarter that they bought back again which is I will say Obviously now I'm just being greedy with the statement to be clear but you see them as a company at this unbelievably low price I would have thought they would have bought more because then you get more bang for your buck but you know absolutely I I I agree I I you know we're trading in hindsight a little bit though but think of it this way for every hundred shares of Alibaba you own you bought another two shares effective l in terms of your portion ownership of their cash flow in the last quarter without you having a shell out a single dollar which is cool um and anytime we talk about the power of share BuyBacks I always have to look at this chart uh do you any idea what this is Apple yeah this is Apple this is the mother of all buyback companies and just you know this is what happens and you consistently chew up shares for a decade uh you know the as you watch the valuation of the company explode um yeah so and I'm saying it's going to happen for rib baba but that is always my hope when you have a company that has significant cash reserves is actively buying back shares at you know undervalued prices that can really help accelerate things in terms of the stock price appreciation and uh this is another funny thing so uh joai is actually kind of active on um X if you you know you know you know familiar with him a little bit remember we've talked about him before he's a chairman of Alibaba group yep he's one of the founders with Jack ma um rumor is that he's about to be a minority owner of the Miami Dolphins no no way yeah apparently they're in the final stages of negotiation um as of you know reports a couple days ago he's also the owner of like Brooklyn Nets and other professional sports teams um but he he posted this uh you know few days ago basically talking about the economy in in China it's little random video clip it's like 10 seconds long just talking about how uh well not him talking but just showing you know people out in public maybe this is just because I have two kids but that said 10:30 at night yeah I haven't seen 10:30 at night and that they should be asleep yeah yeah fair enough um the other interesting thing we have kind of going on this week is remember that the um it was like a national holiday for China this golden week so some of the Chinese stock exchanges were closed for the week and you know that's about to end as we we go through this weekend here you know we're shooting this on uh October 6 here the kind of question is going to be what direction or how aggressive the the stock market like moves are as we come out of this holiday now the Hong Kong exchange will still open but you know it's it's a little bit U muted if you will I guess comparatively because it is indeed a holiday for the country low volume well and we saw these ETFs still going higher despite the actual underlying Market being closed which is kind of interesting maybe sexy rip higher $200 stock price one week all right yeah that was Vinnie Vinnie said that yeah yep yep guaranteed uh you can just email us below and Dylan will Val you checks oh boy all right guys let us know what you think yeah catch you next one
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