Why Shares of E Commerce China Dangdang Inc Jumped Again

Is this meaningful? Or just another movement?

Feb 28, 2014 at 3:45PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of E Commerce China Dangdang Inc (NYSE:DANG) were surging for the second straight day today, gaining as much as 14% following Thursday's blowout earnings report.  

So what: Investors apparently couldn't get enough of the Chinese online retailer yesterday as the stock soared throughout Thursday's session, and immediately jumped out to double-digit gains today. In its earnings report, Dangdang posted a surprise profit of $0.07 a share on a expectations of a $0.04 loss, while revenues increased 22.1% to $325.7 million, better than expectations of $317.7 million. 

Now what: There's clearly a lot of potential in online retail in a fast-growing economy with more than 1 billion consumers, as demonstrated by the explosive growth of stocks like Dangdang and Vipshop Holdings. Even at home, share of flash-sale retailer Zulily jumped more than 50% this week on its own blockbuster earnings. Like Amazon.com, Dangdang has transformed itself from an online bookstore to an all-in-one retailer, a transition that seems to be paying off based on this latest report. For 2014, analysts had been expecting a $0.06-per-share loss, but I'd expect those numbers to get a solid bump given this report and the company's upside first-quarter guidance of 30% revenue growth.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

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This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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