2-Star Stocks Poised to Plunge: Dangdang?

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, e-commerce company E-Commerce China Dangdang (NYS: DANG) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Dangdang's business and see what CAPS investors are saying about the stock right now.

Dangdangfacts

Headquarters (founded)Beijing, China (2000)
Market Cap$430.0 million
IndustryInternet retail
Trailing-12-Month Revenue$631.1 million
ManagementCo-Founder/CEO Guoqing Li
Co-Founder/Executive Chairwoman Peggy Yu Yu
Trailing-12-Month Return on Equity(26.6%)
Cash/Debt$219.0 million / $0
CompetitorsAmazon.com
Alibaba Group
Wal-Mart

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 26% of the 234 members who have rated Dangdang believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, TMFJLo, succinctly summed up the Dangdang bear case for our community:

No chance against competitors Amazon China and Tmall/Taobao. Dangdang has been wrongly tagged by mainstream media and investors as "the Chinese Amazon," but doesn't live up to its name. Its net income has been in the red since the beginning and sales fell this past quarter. It has neither the scale nor the network effect to compete.

If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

The article 2-Star Stocks Poised to Plunge: Dangdang? originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Amazon.com. Motley Fool newsletter services have recommended buying shares of Amazon.com. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners