•VIPshop's share price has risen 3000% since its March 2012 IPO
•With more retailers entering the industry, price competition increases
•Meanwhile, margins decrease as they clear inventory at lower prices
But as competition increases, the marginal benefit of flash sales to retailers decreases, because they will be forced to clear their inventory at much lower prices. The likes of Dangdang, JD and Alibaba are general retailers, without a particularly product focus, which means that customers will be able to compare offers across different platforms. However, firms that have a particular product focus will be relatively less affected by this increased competition from general retailers
Alibaba Group's (NYSE:BABA) China-based e-commerce business is expected to get a lift from a transition to a flash sales model by its daily deals website Alibaba Juhuasuan, says JG Capital.
Alibaba Juhuasuan's transition to (a) flash sales model reaffirms our belief that Alibaba will continue to prioritize Tmall and large sellers over Taobao and small sellers, given better take rates on Tmall platform," Guo wrote. "Considering the improving mobile monetization and increasing Tmall contribution, going forward, we see potential of take-rates' further improvement for Alibaba's China commerce business."
be careful...very easy entry into flash sales.
I think up to $120 is easy by Tuesday (after they announce the sales numbers)..but folks would take profits at 120 after singles day.
after 2 qtrs of disapointment.
As much as 66 percent of the web may have been compromised by a newly revealed security flaw called Heartbleed.
So named by the researchers who discovered it, Heartbleed is a bug that affects an important Internet security protocol called SSL. Specifically, it affects one particular implementation of SSL called OpenSSL.
they are coming out with SSL security visbility best in class..and biz is turning around as per earnings Q3.
They trade at 14 time sales, and 18 times sales..GIMO is at 3.6 times sales. I see GIMO moving up through 2015 to double as their GigaVue-HC2 security modules, and the new SSL security product gains traction.
Insiders are BUYING shares not selling. Director just bought $280k worth 3 days ago. Take opp in these minor dips to buy.
And next year 2015 just went from 0.02 to 0.10..and now to 0.13 today ! Bullish !! Earnings go up, so does PPS.
Went up to 0.05 after the great earnings, but likely due to new SSL product has shot up to 0.08 ! Analysts are getting bullish !
I'm long like you, but to be realistic I don't expect it to go to $37...GIMO management has really shook up wall street with the 2 warnings...so they need to win back confidence. This qtr and next qtr guidance was 1st step..this will take stock to $18 or so before year end. If stock again beats for Q4 and more importantly, keeps or raises guidance of $47M for Q1, this will propel stock back over $25.
My targets is $18-$19 short term, $25 in 3-4 months.
Always invest in a company with forward prospects, not looking back. They are aligning their portfolio to SECURITY now, and their gigmon product is selling this qtr due to security features. THey just released SSL security that is best in class among competitiors. Do a search on it. And Security is BIG now. All IT spend is on security with all the hacking.
Company is repositioning itself.
Stock price wise, it was WAY undervalued..it was 18-19 before last qtr lowered guidance, and stock went to 12. now they have MET the original guidance, MET next qtrs original guidance, said biz is stabilizing, fwd looking bookings above avg, solid new security product out Nov. Stock should be back at 18 easy by year end. Looking for Goldman to give upgrade, or raise PPT as stock already met their $14 target.
Security is doing very well...with all the hackings. Look at Imperva today...Enterprise finally realized network monitoring is crucial for security. And GIMO new products SSL security is best of breed coming out Nov. This is fuel to fire folks..Q4 is going to be big.
guaranteed...they have been very positive on GIMO, but dropped target to $14 in July after they lowered guidance. But now since GIMO has met the original guidance, raised next qtr, showed stabilization and worked out its internal issues, Goldman will raise it back to over $20+
They should act quickly at these prices...GIMO is rebounding back to 20s.