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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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Fool contributor Sean Williams does not own shares in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong. Amazon.com is a Motley Fool Stock Advisor choice.
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