Should you be investing Dangdang?

The Making Money panel on the outlook for Dangdang.

This article is part of the series

DANG Stock Looking Good

By Payne's Picks FOXBusiness

Let’s talk about Dangdang (DANG).

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And by the way -- please don’t tell Donald Trump, but I have to tell you something. These online marketplaces in China are absolutely huge. I know Alibaba (BABA) gets all the ink. JD.com is coming on strong. We actually took profits on that recently.

I gave you guys this one on June 7. It’s already made a really good percentage gain, but I don’t see any resistance between here and $12 -- but from there I think it could go to $14. I will add the caveat right now: It is higher-than-average risk. It’s not for everyone.

Listen -- they’ve missed the street 2 of the last 3 quarters and their gross margins have come down. But here’s the thing: The gross merchandise has gone up dramatically and in the first quarter it was up 49%. 10 million active users. 4 million in the last quarter. Mobile orders -- which is what this game is all about -- 41% of total volume.

They lead in certain categories including media. It’s the name that I think breaks out as these Chinese stocks make one more leg up to the upside. Again -- I think you can make a lot of money in this in a relatively short period of time.

DISCLOSURES

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Dangdang (DANG)

Owns

Family Owns

Firm Owns

Investment
Banking

CHARLES N N Y N
JIM N N N N
DAN N N N N
JOANIE N N N N
MATT N N N N
STEVE N N N N

 

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