By Jessica Toonkel NEW YORK (Reuters) - As Alibaba was preparing to sell shares to U.S. investors for the first time, Jerry Verseput tried to persuade his clients not to throw money at the giant China-based e-commerce company because he thinks IPOs are a gamble, especially those with a lot of hype. Alibaba opened on Sept. 19 at $92.70, ended its first day at $93.89 and reached its peak on November 13, when it hit $120. Alibaba, which already commands 80 percent of the Chinese market and handles more ecommerce than Amazon and eBay combined, trades at a price-to-earnings ratio of about 30, compared with Seattle-based Amazon, which sports a three-digit P/E. On Wednesday, a lock-up period expired allowing insiders owning a total of 437 million Alibaba shares to sell, although 100 million of those shares owned by employees remain restricted until May when the company will report quarterly earnings. At TD Ameritrade , which typically serves retail investors, more than half of those who bought shares of Alibaba at the IPO still own the stock, while 24 percent sold within a month of buying.
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