DANG Stock Looking Good
Let’s talk about Dangdang (NYSE:DANG).
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 (NYSE: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.