5 Stocks to Sell According to Motley Fool

1. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 115

Alibaba Group Holding Limited (NYSE:BABA) has been among the poorest performers over the past 12 months due to regulatory issues. Besides regulatory concerns, analysts like Stifel’s Scott Devitt trimmed their price targets for Alibaba amid concerns over slowing revenue growth. 

In its fourth quarter investor letter, Aikya Investment Management, an asset management firm, mentioned a few stocks, including Alibaba. Here is what Aikya Investment Management declared:

“Most investors looking to invest in high quality and sustainable businesses in Emerging Markets start their assessment by analyzing the franchise and the financial statements – but often miss the risks associated with questionable stewardship. For example:

Alibaba was widely understood to be a high-quality and sustainable company, with the appearance of a business that empowered SME merchants while generally contributing to technology and financial infrastructure in China. Its dominant e-commerce franchise delivered healthy ROEs for several years, to the contentment of investors. We believe that the competitive advantage was explained mostly by the management’s early links to the Shanghai faction of the CCP. As the political winds have changed, the business has proven to be less resilient than first perceived.”

You can also take a look at the Top 10 Stock Picks of Samuel Isaly’s OrbiMed Advisors and the 10 Best Dividend Stocks According to Tiger Cub Rob Citrone.

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