this is classical pump and dump stock, stay away (short or long)
look at the pathetic trading volume. They can bring stock up or down 5% on few thousand shares. But this stock has 50+ millions shares outstanding with only 7 milling floating. Insiders can came out anytime and dump massive amount shares onto market and crush it 50% in a day, or they will do it slowly. They need bag holders for sure. That hedge fund that bought in at 6 also need you to take their shares. If this stock is so hot, why they priced it at $6 IPO merely a short while ago? Because they know the company is a junk and it remain as a junk. Selling luxuries over internet and you think this is a good business model? Give me a break! There are hundreds, if not thousands of this kind of shops in China. Even CEO himself admitted that they don't have any competitive advantage over other shops. They are probably good at cooking books.
Stay away, don't short though as they can squeeze you really hard. But don't be a potential bag holder either.
BTW. Stock merely traded a few millions shares all together since IPO and stock tripled. There has to be someone manipulating it. If nobody cares about this stock, they will have just to play with themselves. Selling from right hand to left hand. That's what they are doing now.
if you really know what a classical pump and dump is you would not call this company with a growth of 200% and trading at a YPEG of 0.1 with bright industry prospects and a leadership position a punp and dump company!. A mere increase in PEG of this company could make this a 10 bagger easily. Only reason I could find why this stock trades this low (no insider selling so far) is due to bad china sentiment. All original investors, VCs, angels, founders, etc. have so far not sold any shares clearly indicating that they do see higher prices for VIPS as the company proves its model. In fact, Sequoia was happy to more shares at the IPO price (typically VCs don't invest unless they see a potential for 10x profits)
Take a look at classical pump and dumps
WDAY - valued at 40x revenues on losses
If you give valuation of WDAY to VIPS, can you tell me what the price of VIPS should be .. BTW - VIPS has been growing faster than WDAY
Fair Disclosure - I am short WDAY in high 56s at this time via synthetic short calls and long puts