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 Mecox Lane Limited
So what: On paper, the quarter doesn't look too bad with Mecox reporting 36% revenue growth, but investors seem to be punishing the fact that a $13 stock yesterday produced only breakeven results. With no analyst estimates for comparison, things get even more troubled when the quarterly report breaks future revenue projections into three components: online revenues, company-run stores, and franchised stores. I'm betting investors are seeing only the online revenue guidance of $44 million to $46 million next quarter and not adding the whole together.
Now what: Lately, there has been no saving grace to being a Chinese-based equity (see RINO International
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