E-Commerce China Dangdang (DANG) shares are trading around $6.87. Dangdang is based in China and is often likened to be the Amazon (AMZN) of China. These shares have fallen from a 52 week high of $36.40. The 50 day moving average is $11.76. Dang has earnings estimates around break even for 2011 and 8 cents for 2012.
DANG has posted extremely strong sales growth of about 53% and with the economy in China poised to grow much faster than the rest of the world for many decades, this stock has explosive potential. The Dangdang website is already ranked as the 68th most popular site in China, and could continue to climb over the years.
DANG has a current market cap of about $530 million and a enterprise value of about $280 million, due to the cash on the balance sheet of roughly $250 million. This stock is very oversold, back in June it was trading around $20 and now is trading for about a third of that value.
This reminds me of when Mercado Libre (MELI) was pushed by shorts and panicked investors into the single digits during the financial crisis, only to see it rise back up to over $90 per share. This stock is also likely to see a short covering rally soon.
Congrat on your 6K shares purchased at $6.90. Are you selling yet? What's your prediction for this week and coming months? Do you see new low again? The reason that I'm asking because you're not afraid to post your position and it seems like you've caught it right at the bottom (at least for the moment).