The Avanti Group the equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe have recently drawn their investor’s attention to the surge in share price of SingPost gaining to SGD $1.72 up 11% in Singapore trading, setting the way for the stocks highest ever closing price since it went public listing back in 2003. Alibaba has agreed to pay $249 million, SGD $312.5 million to acquire nearly 220 million new and existing shares, with both companies to hold talks regarding establishing an e-commerce logistics venture, according to a statement released by the Singaporean company.

“As we have repeatedly been telling our clients, Alibaba has been enjoying a Midas touch of late in regards to their investments and others should take note. Trying to down play the sheer physical size that Alibaba now holds would be one of the most foolish investment mistakes in history, yet some seem to be oblivious to this fact,” said Murakami Hiroto, Senior Vice President of Global Investment for The Avanti Group.

At SGD $1.42 per share the purchase price is some 8.4% lower than the share’s closing price on May 27. With the investment forging a connection between SingPost and Alibaba’s billionaire founder Jack Ma as he further grows Alibaba’s logistics network for shipping the goods sold on its platforms in the lead up to the company’s IPO that may eclipse that of Facebook Inc.

“Our read on this is that Alibaba is rolling out a commercial logistics infrastructure from Mainland China across the region, with the Philippines the next most likely port of call for further investment for a variety of reasons, we will be monitoring developments closely in this direction. The value of any IPO conducted by Alibaba at the moment is now running the serious risk of undervaluing the company by a significant margin, which will give investors great opportunities to take advantage of any holding they can acquire at an early stage,” stated Murakami Hiroto, Senior Vice President of the Global Investment department at The Avanti Group.

The deal with the Hangzhou, China-based Alibaba yesterday, makes it the second-largest shareholder in the former state owned mail service after only Singapore Telecommunications Ltd, SingTel’s holding of SingPost will decrease to around 23% from its previous 26% position in the postal service.

The Avanti Group is an equity research house providing research and analysis outsourcing solutions for institutional financial traders worldwide, founded in early 2003.