DANG: Down Nearly 40% in Seven Trading Sessions

As I wrote in mid May after E-Commerce Dangdang’s (DANG) first earnings report, people were paying up for growth not profits. Now that “risk is off”, it appears people are not willing to pay for even the revenue growth. The stock is down 14% alone today and in 7 trading sessions, over 40%..

This is an example of catching a falling knife – one would have thought coming into the day, a stock down nearly 30% in six sessions would be ready for an oversold bounce. One would have lost a finger or two. As I said with RENN last week, some of these names are falling so dramatically they are actually going to be interesting from the long side. But finding the right entry point is not easy.

We’ll mark this down as another ‘success’ for Wall Street – an overbloated, overpriced stock that institutions were able to flip to retail, and leave the scene of the crime. Peggy Yu Yu might not be a billionaire anymore after this past week.

No position

About Mark Hanna 543 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

Follow Mark on Twitter @fundmyfund.

Visit: Market Montage

Be the first to comment

Leave a Reply

Your email address will not be published.


*