Today I will sell Vipshop (VIPS) from the Growth Portfolio and Aggressive Growth Portfolio as the stock broke support levels after the company reported earnings and hit a 52-week low.
VIPS closed at $22 yesterday, but opened at $20 today and started to free-fall just before 1pm EST, dropping to a low of $17. The stock has since rebounded and is around $18.5 currently.
VIPS beat the street’s profit estimate, hit the revenue estimate, and guidance is good. Still the stock is under a cloud due to its accounting of sales as well as being a Chinese company (and the Chinese market is in a Bear Market right now).
I originally purchased VIPS at $9 (after-splits) and have sold most of the shares I held in client accounts already this year. I will keep VIPS on my radar and may purchase it again later.
