$2.37 $0.04 (1.5%)

01:46 PM EDT on 07/18/19

Jumei International (NYSE:JMEI)

CAPS Rating: No stars

Current Price $2.37 Mkt Cap $53.9M
Open $2.32 P/E Ratio 0.00
Prev. Close $2.33 Div. (Yield) $0.00 (0.0%)
Daily Range $2.32 - $2.37 Volume 25,783
52-Wk Range $1.81 - $2.79 Avg. Daily Vol. 10

Caps

How do you think NYSE:JMEI will perform against the market?

Add Stock to CAPS Watchlist

All Players

12 Outperform
7 Underperform
 

All-Star Players

2 Outperform
4 Underperform
 

Wall Street

2 Outperform
0 Underperform
 

Top NYSE:JMEI Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

SlayneM (< 20)
Submitted June 21, 2014

The numbers don't lie. Check out hard facts before you invest. China has 350 million online shoppers. That is like the entire population of America. I believe as China begins to lift the other 4th / 5th tier cities out of poverty in the next 20… More

Top Bear Pitch

There are no pitches that meet the Top Bear criteria. Explain

If this upsets you, start recommending pitches below!

NYSE:JMEI VS S&P 500 (SPY)

NYSE:JMEI Summary

Fools bullish on NYSE:JMEI are also bullish on:

Recent Community Commentary

Read the most recent pitches from players about JMEI.

Recs

0
Member Avatar deatwood01 (< 20) Submitted: 7/21/2015 11:29:10 PM : Outperform Start Price: $19.08 NYSE:JMEI Score: -128.50

Strong growth both in China and other markets in Asia

Recs

0
Member Avatar asilverp (20.00) Submitted: 8/30/2014 4:25:32 PM : Underperform Start Price: $30.75 NYSE:JMEI Score: +140.45

China doesn't seem to be doing well right now, IPO's typically perform poorly anyway, and we have some rather high valuations on this company. I see no reason to be overly excited about this company over the myriad of other Chinese companies out there.

Recs

0
Member Avatar leeyounghsu (< 20) Submitted: 7/28/2014 3:01:01 AM : Underperform Start Price: $29.00 NYSE:JMEI Score: +142.39

JMEI should be shorted but not now
Great company and amazing figures
JMEI is an online retail enterprise which is mainly engaged in cosmetics. Now the company scale is taking shape. The Net GMV has exceeded US$800 million, accounting for more than 20% of the market share in online cosmetics retail.
JMEI sales its products through three modes, including the curated sales, online shopping mall, and flash sales. The first pattern specializes in beauty products, with a daily well-selected products of no less than 100 SKUs. It carries out the strategy of professional planning documents and a higher discount, and usually updates them every1-3 days. Beauty Mall brings together a comprehensive brands (10000 + SKUs). In the mall, the users can choose the goods according the category. Flash sales model mainly deals with comprehensive category, such as clothing, shoes, bags and home furnishing. And usually the discount sales of each brand will last 3-4 days.

The net GMV of JMEI is more than $816 million in 2013, with a year-on-year growth of 149.5% over 2012. Its gross margin was 24.5%, lower than 25.9% in 2012, higher than 2011's 20.6%; The self-operation gross margin is 31.4% , higher than 28.9% in 2012, and 15.7% in 2011.
The advantage of JMEI
1) With a low return rate of 10%, beauty products have not seasonal goods or overstocked products while VIPS has to sale the overstocked products.
2?The repurchase rate is as high as 88%.
3?It has 10.5 million active users , a similar scale with VIPS.
4?Its own regular customer flow accounts for 60%, while flow from search accounts for 40%. In terms of platforms, 51 percent is from PC, and 49% comes from the mobile terminal. The 20% of sales in JMEI come from flash purchase. A high proportion of the mobile terminal will make it better develop its flash sales business.
5?Low market cost. In 2013 this part only accounted for 6.3%.
6) The cost of new customer acquisition is only 40 yuan , about 60 yuan less than that of VIPS.
After checking the products listed daily , we will find that the top is mostly placed with middle- and high-end brands. But in light of the average consumption price of 22.7USD, the site still mainly relies on low-end brands , famous brands are mainly used to attract flow.
The problems of the company
1,The authorization issue
European and American high-end cosmetics brands are relatively conservative. They still mainly get in China through traditional channels, for example, their accesses to Chinese department stores, by the regular chain or a proxy mode. There is little independent authorization specialized for domestic online-shopping channels. Actually, online sale has become an important channel for these overseas mega brands. Goods from various non-formal channels, such as smuggled goods, flee goods and so on, have accounted for a considerable proportion of online -shopping market.
At present, most brands, directly contracted with JMEI, are local brands, the joint venture brands and Korean brands. Among foreign brands, it is able to cooperate with part of middle brands, but it is still difficult to cooperate with high-end brands.
JMEI sites launched a channel for famous brands, called “ Belle spring shoes on the 4 anniversary ". But as the only online retailer and distribution channel for Belle brand, the“yougou”?which is another online retail website? made public statement that JMEI were cheating customers because it never cooperated with JMEI and supplied goods to JMEI.

This is the screenshot of a special show. This show is the 4th anniversary of Belle spring shoes. It is displayed on the official website—JMEI..
Yougou also points out that JMEI is concerned with false sales. All goods on this special show are marked as “Grabbed” once they get on shelves. Moreover, this show is said to steal pictures of all products from Yougou. But Yougou has not authorized it in fact . That ignores the pictures copyright of Yougou. In addition, it is fake propaganda for JMEI to claim the so-called lowest prices on the net. The prices are higher than those of Yougou.
There is another “action” that can reflect its false propaganda, that is “flagship store”. There are many official flagship stores of cosmetic brands in JMEI. They are slightly different, some flagships are authorized by manufacturers, while some are not. For example, the official flagship stores of Estee Lauder in JMEI are not officially authorized.
Sun Lingling?Chinese public affairs and Head of Corporate Communications Department of Estee Lauder, declares: “our official channels for sale range from the designated counters in department stores, brand website to our independent stores, that is, Sephora and Clinique flagship store in Tmall." According to that, JMEI is not within the range.

This picture comes from Tmall. It belongs to Alibaba. Alibaba is the online direct retail site in China. It declares that the Estee Lauder flagship in Tmall is the only one store with authorization.

The Estee Lauder flagship store in Tmall

The Estee Lauder flagship store in JMEI without authorization.

2,Fake products problem
Fake products problem has become lingering shadows of JMEI. And some shorts such as moddy water, Citron and other bodies are believed to itch for a try.

These complaints about fake products are very common in the social media,such as weibo.

We have made a statistics on purpose. They are about the most popular weibo from Leo Chen OU’ . He is the CEO of JMEI .
Let’s look at this weibo.
From first to 30th pages, the time span is from May 17th to May 29th. There are a total of 592 comments. 64 comments contain “fake” word , accounting for more than 10.81%.
There are 17 comments containing words of “Replied by customers of JMEI”, accounting for more than 2.87%.
From 150th to 180th pages, the time span is from February 21st to March 1st. There are a total of 609 comments. 10 comments contain “fake” word, accounting for more than 1.64%
there are 5 comments containing words of “Replied by customers of JMEI”, accounting for more than 0.82%.
From 300th to 330th pages, the time span is from February 18th to February 18th. There are a total of 606 comments. None comments contain “fake” words , accounting for more than 0%.
There are 2 comments containing words of “Replied by customers of JMEI”, accounting for more than 0.33%.
In this weibo, there are 48 comments containing "like" , which ranked the hottest. 16 of those comments contain “fake” word , accounting for more than 33.33%.
From the statistics of the comments, the other weibos also have the same characteristics.
Of course, we also notice that there are some malicious comments from competitors. It is a pity that the response rate from customer service of JMEI is too low. It is not helpful to customers to defend their own legal rights. The marketing expense of JMEI is 6.3% far lower than that of competitors. Thus it is not surprising that there are malicious comments from them.
In the Baidu search engine:

The two pictures above come from Baidu searching data.
We find there are 858 thousand pieces of relevant news with “JMEI genuine”. However, there are 1760 thousand pieces of relevant news with “JMEI fake”, which is more than twice as many as the former one.
In the face of such big data, even excluding the opponents’ smear, we can also think, the company must have problems with fake products .
Specific data:

From 2011 to 2014, among all news reports, especially the influential news, almost seven-tenths are negative news. Thus it will give us the impression that the company doesn’t do well in PR, and also lacks their concern .

We respectively examine consumers’ demand in the search of keywords JMEI within the last 7 days , 30 days, as well as the last 10 months. From the three tables, we can see very clearly that consumers’ demand for "genuine" occupies the first place. The search requests whether products are fake or not are in high demand .
Along with more than 70 domestic and foreign cosmetics enterprises, JMEI jointly launched Genuine Cosmetics Security Code System. According to the information from its official website , the vast majority are the non-famous brands.
.

Consumers can easily misunderstand that all goods come from such system; while in fact, some cosmetics sold on the site are not in the range of Genuine Cosmetics System. And we do not know their sources. For example, there are no key representatives of some brands like ‘Clinique Estee Lauder’, ‘C-Clinique ’, etc. Such thing has heavily damaged the authority of the alliance.

JMEI also cannot explain where the large number of samples and products symbolized “not for sale” of famous brands come from.

In addition, JMEI still frequently cheats public in its propaganda, such as vague coverage of “genuine security code". Besides, many unauthorized brand flagship stores blossom everywhere in JMEI. The experts point out that they already belong to false propaganda.
Of course, JMEI also launched after sales policy that customer can return products within 30 days after they opened the cover. It reduces customers’ hesitation to a certain extent.
3. The problem with fraud transaction
Currently, mobile terminal contribution to GMV is more than 49% in 2014Q1; VIPS is 23% in 2013Q4; JD is 18% in 2014 and DANG is higher than 10%.
In the view of the mobile client strength, we will do analysis step by step with Baidu. Compared with the same period, we make research deeply.
This is a search trend of mobile clients of 5 online B2C from March, 2011 to June, 2014. We can easily find the m

Leaderboard

Find the members with the highest scoring picks in JMEI.

Score Leader

glenn12345

glenn12345 (99.98) Score: +188.19

The Score Leader is the player with the highest score across all their picks in JMEI.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
Score Commentary
MichaelHamilton 98.44 5/29/2014 Underperform 5Y $28.58 -91.74% +55.19% +146.93 0 Comment
leeyounghsu < 20 7/28/2014 Underperform 3M $29.00 -91.86% +50.53% +142.39 1 Comment
asilverp 20.00 9/2/2014 Underperform 1Y $30.75 -92.33% +48.13% +140.45 1 Comment
Soren0 82.18 5/1/2017 Underperform NS $3.52 -32.95% +24.74% +57.69 0 Comment
wallet2061 71.79 5/8/2019 Underperform 5Y $2.70 -12.59% +3.54% +16.14 0 Comment
TheSlightEdge 99.24 5/16/2019 Underperform 3W $2.48 -4.84% +4.16% +8.99 0 Comment
glenn12345 99.98 8/15/2018 Underperform 5Y $1.52 +55.26% +5.68% -49.58 0 Comment
Gmoney70 40.89 8/3/2016 Outperform 5Y $4.13 -42.86% +38.15% -81.01 0 Comment
danyboy2 37.32 8/16/2016 Outperform 5Y $4.80 -50.83% +36.18% -87.01 0 Comment
SequoiaStocks 82.51 11/18/2015 Outperform 5Y $8.38 -71.82% +43.81% -115.63 0 Comment

Wall Street

See what the Wall Street professionals think, according to their public statements and filings.

Player Name Player
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
S&P
Gain
Score End Date Commentary
TrackBofASec 91.64 7/15/2014 Outperform NS $28.82 -91.81% +50.56% -142.37 0 Comment
TrackOppenheimer 22.70 6/18/2014 Outperform NS $26.67 -91.15% +52.79% -143.95 0 Comment

Advertisement