E-Commerce China Dangdang Inc. (NYSE:DANG)
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E-Commerce China Dangdang Inc.
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E-Commerce China Dangdang Inc.
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I bought DANG because it was supposed to be the Amazon of China. I did well with the Google of China, BIDU. I bought a little DANG, but not much. I bought a small amount initially of BIDU too. I think it is too difficult get information on these stocks, so I will invest small. DANG has huge amounts of shares outstanding: It isn't a small company. Income is growing quickly but from a very small base. It will take a long time for it to represent a good value. And there is risk in waiting. I would not touch this one unless you are thinking in terms of ten to twenty years. If I add more to this one it will be only after studying it for at least another year. I like my small position. I now have a handful of Chinese stocks and I plan on letting them to do the heavy lifting. If they can't - I will be glad simply to let my positions ride the market.
i think this stock will rise much quicker then you think. a have lost a lot, and after today upgrade could keep spiriling down. however after 1-2 more quaters of 100% growth people will notice. I am no market timer, but i do think it is a realistic 100% play within 1,5 years. history will absolve me.
i also made the same call on yoku, when everyone was selling.
this one is going to be slower as its not as sexy.
In China, people don't shop online (as much).
But they will start to shop online (lots) 10 years from now where will they be?
That is what I think too that they will shop more and more online someday. BIDU is really growing well, and I think that is an indication that there are great potential in any successful online business. And DANG could be like Amazon someday. Amazon recorded loss after loss in the early days and DANG earnings are presently very low, but sales keep growing very quickly. In time, I think they will be a great company, but we definitely have to think ten or twenty years. I only bought a little so if I am correct a little is all I will need. If they don't do well a little is all I will want.
I also have a fairly diversified Chinese portfolio. I started out with very small position in BIDU and later bought small positions in DANG, Ctrp and CCSC. And I doubt I will add any more stocks. I feel these have the diversification I want. I definitely think these are stocks I need to buy a little and wait a long time. But I think the wait will be worth it. BIDU has done very well for me as I bought that one early. I lightened some BIDU to buy the other three. And that is how I build my Chinese portfolio. I believe China carry more risk because of accounting issues and government interference. But I wanted to risk some because of the huge growth prospects as more and more people join the ranks of the middle class and more affluent Chinese.
Internet sales is relatively new in China and in general people don't have confidence in internet transactions (yet).
Too many stories about being cheated (a stone in a box instead of the laptop you've ordered), shipments which never arrived (and the impossibility to be refunded).
Certainly older people (over age 35) are a lost generation for internet sales. But the younger people are getting used to it and they are the people who are buying. Without doubt, there will be a great future for online stores, just wait a few years (2-3 years, I think).
The most popular online store is TaoBao (part of Alibaba) followed by Joyo (= Amazon.cn) and by DangDang in third position.
I am following these companies (and others) very closely, while living in China since 8 years.