Dallas, Texas 11/05/2013 (Financialstrend) – The stock of Lightinthebox Holding Co Ltd-ADR (NYSE:LITB) plunged 7.36% on November 4, 2013 to close the session at $7.93. During the trade the stock opened at $8.63 and surged to $8.67 before touching a day’s low or say, marking new 52 week low at $7.90. The stock is currently trading about 66% below its 52 week high of $23.38. On Monday, the stock traded with volume of 0.97 million shares compared to its 30 day average volume of 0.41 million shares. The stock is currently trading way below its 200 day moving average of $13.47 and also below its 50 day average of $11.14. Lightinthebox, a Chinese online retailing company, was just listed in the U.S. this June and its Initial Public Offering price was $9.50.
The Beijing based LightInTheBox offers apparel products, electronics and communication devices, small accessories and gadgets, home and garden products and range of other products through the websites lightinthebox.com, miniinthebox.com as well as others. Recently, the law firm Levi & Korsinsky announced a class action lawsuit against the company on behalf of investors who purchased the shares of the company between June 6, 2013 and August 19, 2013 (class period). The allegations purports that the company mislead or failed to disclose dramatic decrease in company’s sales growth during 2Q13; the costs surpassed its sales during 2Q13; and as an outcome the company was not on track to achieve the financial performance it had made the market to expect during the class period.
LightInTheBox reported its 2Q13 financial results on August 19, 2013 which fell well below the expectations. Moreover the company informed that demand for its product was much lesser than previously made to believe. Following the announcement, the stock of LightInTheBox nose-dived to close at $11.58 to lose about 40% from its previous close of $19.27 per share.