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E-Commerce China Dangdang Inc. Message Board

  • jasonmooore jasonmooore Aug 20, 2013 11:47 AM Flag

    Morgan Stanley said well it is all good with this company but we will downgrade

    yes, that makes perfect sense. well, at least they come up with some good reasonable sound execuses for that next time or it looks really bad on them. Well they are bad already so I am not even sure they cared. Investment banks suck up investors money so huge bonuses can be paid out to top executives. Merry Christmas and happy new year.

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    • can you post up what they said?

      • 1 Reply to lawstuff22
      • article:
        nothing wrong with the company itself. Analysts Philip Wan, Timothy Chan, and Gillian Chung wrote in their research note published today:

        Dangdang delivered a solid 2Q with better margins, helped by strong performance in marketplace and improved fulfillment efficiency. We remain positive on China’s e-commerce market and Dangdang’s leadership in online media distribution.

        Dangdang is well positioned to capitalize on the e-commerce market upswing in China. It has captured half of all online book
        sales in China, yet has serviced only 2-3% of the Chinese online population, implying ample upside potential.

        The downgrade came only because Dangdang is already trading above its historical band:

        We downgrade from OW to EW. This mainly reflects rich valuation. Current price/12m forward sales ratio is ~0.8x, vs. its range of 0.3-0.6x over the past year.

        Before yesterday’s sell-off – Dangdang lost 11.6% in one-day – the e-book seller gained almost 130% in the last three months. The Morgan Stanley analysts urge their investors to take profit.

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