Alibaba Group Holding Limited (NYSE:BABA) [Trend Analysis] closed at $179.91 with plunge of -3.63% in last trading session.
Alibaba Group Holding Ltd’s (BABA) newly minted bonds rallied on Thursday after the Chinese internet firm’s $7 billion multi-tranche sale attracted a blow-out response and set a precedent for rival companies to follow, analysts said.
Strong demand for the sale, the biggest by an Asian borrower so far this year, allowed
Alibaba to importantly tighten the prices it offered. Orders for the bonds totalled about $40 billion, bankers said. The five-tranche deal involved bonds maturing at points from 5.5 years to 40 years. The range allows China’s biggest e-commerce company to develop a yield curve which peers could use to determine the attractiveness of maturities when issuing their own debt, analysts said.
“The tech sector (for bonds) is small in Asia and this sets a precedent for others to follow,” said
CreditSights analyst Sandra Chow. She said Alibaba, BaiduInc and Tencent Holdings Ltd are trailblazers in Asia, where investors were generally less familiar with tech industry bonds than in the United States. Alibaba’s latest sale is its second, whereas Baidu and Tencent are seasoned issuers.< /p>
“It does help build up the market and the range of maturities will create better trading liquidity across the curve,” said Chow. The tranches for the 5.5-, 10-, 20-, 30- and 40-year maturities were priced at 73, 108, 118, 138 and 158 basis points (bps) over U.S. Treasuries. In the secondary market the bonds were trading at 63-62, 106-105,106-103, 125-122 and 144-141 bps, respectively
The firm has annual sales growth for the past five year of 51.20%. While past twelve months price to sales ratio recorded as 15.34 and price to cash ratio remained 18.32.
The Walt Disney Company (NYSE:DIS) [Trend Analysis] tries to capture market sentiments, shares shows upbeat performance surged 1.77% to $105.24.
Walt Disney Co’s ESPN unit is laying off about 150 employees, ESPN President John Skipper said in a memo to employees on Wednesday. “The majority of the jobs eliminated are in studio production, digital content and technology, and they generally reflect decisions to do less in certain instances and re-direct resources,” Skipper said.
When calculating EPS estimates for the current year from sell-side analysts, the Price to current year EPS stands at -0.70%. Investors looking further ahead will note that the Price to next year’s EPS is
As for as concerns shares volumes, in share of capital The Walt Disney Company (NYSE:DIS) has 1511.78 million outstanding shares among them 1476.79 million shares have been floated in market exchange. DIS institutional ownership remained 62.10% while insider ownership included 0.10%. The firm attains analyst recommendation of 2.40 with week’s performance of 2.17%