E Commerce China Dangdang Inc (ADR) (NYSE:DANG) Down Over 10%


Dallas, Texas 10/11/2013 (Financialstrend) – One of the unforeseen fallouts from the ongoing Federal Government lock down has engulfed E Commerce China Dangdang Inc (ADR) (NYSE:DANG) along with other Chinese and United States focused internet and e-commerce stocks. Across the board, stock of companies like Yahoo, Facebook, Yahoo, LinkedIn and Baidu, Renren and Dangdang have shed a substantial market valuations over the past 10 days. Of this entire lot, DANG has receded the maximum. Its stock has depreciated by close to 10.75 over the past week of trading.

The fall in value was preceded by a close to 4% increase in the market value of DANG stock between October 2 and October 4 on the back of publication of “Twitter’s public S-1” numbers. The Chinese e commerce giant stock has tried to reverse course by posting a modest gain of 2.59% over its previous day close during trading on October 10. Across the day close to 3.4 million of stock got traded in comparison to its daily average of 3.1 million. Current valuation reflects a 15% dip in value over its 52 week highest valuation and is 179% higher in comparison to its 52 week low pricing.

 In spite of the recent sell off, the company has a market cap of $826 million. It had managed to post sales of $936 million over a trailing 12 month period leading to net loss of $58 million from operations in the same period. Its quarter on quarter sales has gone up 23% during its 2Q with corresponding earnings per share rise of 48%. In spite of the quarter on quarter increase on sales volume, the operating and profit margins have shrunk over the previous quarter. Operating margin was down 7.2% while profit margin was down 6.2% over the trailing twelve months period. In the past 6 months the stock has managed to post a 162% increase in its market value.