Dangdang metamorphosis remove booksellers label stock 3 months rose 40%

[Abstract] Dangdang trying to weaken the label on the book to sell in order to be more comprehensive electricity supplier plate nuggets.

Tencent science and technology Hu Jun August 7th reported

is not only China’s largest online bookstore." August 5th evening, Dangdang official website issued a statement declaring that the road is about to open in September.

in the so-called statement, Dangdang said: to do a comprehensive cultural background of fashion electricity supplier. In addition to books, as well as clothing, shoes, accessories, beauty, household items."

in this way to lay aside the marketing level, it can be seen, Dangdang is trying to weaken the label on the book to sell, in order to improve the electricity supplier in the larger plate nuggets.

now, Dangdang has gone through 15 years, called China’s electricity supplier industry veterans. But the status of its market value far less than latecomers jumei.com and vip.com, this transformation is perhaps to seek to enlarge.

hand bookseller broaden their business moat, the other hand to fight the new wells in the field of fashion, Dangdang this idea had sprouted and had to sneak some time. Let me see the success? And this process may also be a major cause of the recent stock price soaring in dangdang.

Dangdang stock recovery: 3 months rose 40%

recently, fly high tide to usher in a new wave of Dangdang’s shares, to August 6th closing price of $14.14, compared with May this year less than $10, or three months to more than 40%. If compared with last year’s lowest price of $7.6 in July, its share price increased by 86% a year. Currently, Citigroup is still holding on Dangdang buy rating.

what is the reason to promote the resurgence of

Dangdang shares?

as the first wave of listed electricity supplier companies, 4 years ago in 2010, Dangdang has successfully landed on the U.S. New York Stock Exchange, the issue price of $16. Then dropping all the way to the last year in April fell to the bottom of nearly $4. Compared with the peer vip.com, Jingdong listed after a soaring stock price momentum, Dangdang once contrasts.

even in the present, when the market value is still only $1 billion 100 million, compared with jumei.com, vip.com, Jingdong are an order of magnitude difference.

in the industry view, Dangdang’s valuation is likely to be underestimated. Electricity supplier analyst Li Chengdong said Dangdang’s revenue is not proportional to the previous market value.

Li Chengdong Zeng calculations, the Amazon in 2013 annual net profit of $345 million, $134 billion 400 million, 400 times the price earnings ratio. Vip.com is about 70-80 times earnings, Jingdong 2013 loss. Assuming Dangdang annual revenue growth of 30%, net profit margin of not less than 4%, the annual profit of $338 million, giving a conservative price earnings ratio of 35 times, the market value of at least $1 billion 900 million or more. >

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