Beijing time on December 16th morning news, U.S. investment site The Motley Fool analyst Rick · Aristotle · Muna Liz (Rick Aristotle Munarriz) on Thursday said the author, compared with the once high valuation, Dangdang network (micro-blog) (NYSE:DANG) of the scale is too small. He pointed out that, for Dangdang, the situation has not improved, because its losses far exceeded analysts’ expectations.
below is the summary of the article:
Dangdang started this year’s journey with a combative mood. In December last year to $16 per share IPO (IPO) after the price of the financing market, dangdang.com stock hit a high of $36.40 today in a month later, but the company CEO Li Guoqing (micro-blog) has publicly criticized the lead underwriter Morgan Stanley underpricing.
If investors are willing to
after the completion of IPO transactions in recent weeks underwriters bear the equivalent price of IPO more than two times the cost of buying dangdang.com stock, so why dangdang.com cannot set the price high IPO to raise more money? But now the price not only has dangdang.com erase all the gains after IPO, but also has dropped to single digits. But in spite of this, we can not say that Morgan Stanley laugh last, because the bank has long been part of the shares held by some of the quality of the customer has suffered losses.
of the Underwriters, dangdang.com is a very easy underwritings, because of its "China Amazon (micro-blog)", although between dangdang.com and Amazon only genuine similarities is that the two companies are from the sale of books and started his business.
Dangdang, the situation has not improved. In the short period of profit, this online retailer suffered back-to-back quarterly losses, but the losses far exceeded analysts’ expectations.
compared with the once high valuation, Dangdang’s size is still too small. Although orders for the previous quarter exceeded 10 million 800 thousand copies, the average price per order was only slightly above $13. Why dangdang.com business scope should be in the book? In addition to the book business, dangdang.com has been promoting the establishment of a more extensive mechanism, but all such measures are required at the expense of profitability.
Dangdang and Youku (NYSE:YOKU) on the same day, the two companies have a similar trajectory. At the beginning of the listing of IPO, both the company’s share price has risen sharply, but in recent months have fallen sharply. Youku, its merit is that at least the company’s share price is still higher than the price of IPO.
‘s lack of profitability and analysts’ expectations for next year’s losses will be even more serious, so that China’s Amazon has become China’s Pets.com". Pets.co>