This from motley fool article -
"Another Chinese internet stock, Vipshop Holdings (NYSE: VIPS) trades at substantial discounts to growth rates. Vipshop calls itself the leading online retailer for Chinese brands, and expects revenue to grow 120% this year, yet the stock trades at only roughly 1 times revenue. Analysts see revenue leaping another 46% to $2.3 billion in 2014. The market cap sits at only $1.9 billion.
Even with Vipshop surging some 500% since the IPO last year, the valuation remains compelling at those levels. While investors are unlikely to give the stock a 10 times revenue multiple that a domestic stock would obtain with that growth, it doesn’t appear unreasonable for it to eventually trade at between 2 and 3 times revenue."
Reads my mind ... 10 times revenue for a domestic stock with that growth ... if not for the fact VIPS is a china stock .. this could have garnered 10 times revenue or 10x the stock price .. LOL
These are exact reasons why I think VIPS will be a multi bagger from here in a few years. Time will tell .. My shares are firmly locked
VIPS is not like other stocks - it has a strong base of support with loyal shareholders. Fewer shares means less likelihood of bending on a sour note. It may be appearing weak today but it has something other stocks may not - huge room for expansion and growth of its target market. China has over 1 billion people not yet wired into the net but infrastructure is being added daily to make everyone equal - that is the situation on the ground - the desire for equality and homogeneity will ensure greater access in the near future, and greater exposure for flash internet sales. God bless you for your knowledge Mary Stern, but please, if you're not trading this stock - don't attack it, so we can go forward without infection in the body.
Sentiment: Strong Buy
10x is what the Motley Fool article was referring to ..
Beauty of VIPS is that as gross margins increase to estimated long term 28% (from 23 levels now), and marketing, fulfillment and other expenses as a percent drop, Op margins could double or triple ...
That coupled with growth of revenues could support a stock price that is 10x current valuations in a few years!
With VIPS, the time is on my side IMO