yep its called making and growing earnings vrs. losing and never having made any money. if dang can start making profits and growing it every qt. this stock will grow, this quarter is important to show improvement, the risk is it has ran up on flash sales hype, but it also could be a drag on earnings short term because of increased cost. to implement, goodluck
I get the feeling that VIPS is probably setting itself up as an aquisition target (Alibaba or 360 Buy, whomever IPOs first), while DANG is positioning itself for long term independence by spending itself into the red with improvements to infrastructure (warehouses, distribution network) - short term not profitable, long term could be an e-commerce leader. They've got THE e-reader, they are watching which trends are popular (mobile, flash sales) and acting accordingly. If Alibaba decides to run everyone else out of business by underselling and enduring with their probable IPO cash windfall it's going to be rough, otherwise DANG has a shot at becoming an industry leader. Big if, obviously. I read on this board that there was a major motion picture very popular in China that chronicled the founders of Dang Dang and painted them as national heroes. I'd like to imagine that translates into site traffic and customer loyalty. Is Alibaba's Jack Ma as well-loved in China as the Dang Dang couple? And will any of that matter if Alibaba prices everything significantly less than Dang Dang after it's IPO? I'm cautiously long on DANG, just trying to be realistic. Would love to hear DANG has achieved profitability, or at least continued to move closer, at next earnings call, that's going to be THE big share price driver. If not, well, if you've been long for a couple of years like me you've seen what happens - not a lot of far-sighted investors out there unfortunately.