| Stock (Symbol) | Stock Price | |
Vipshop (VIPS) |
$84 |
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| Data is as of | Expected to Report | Sector |
November 15, 2013 |
Feb 17 – Feb 21 |
Retail & Travel |
| Sharek’s Take | ||
 Vipshop (VIPS) is a Chinese online retailer that sells items through flash-sales on its site Vipshop.com. VIPS is one of the hottest stocks of the last year, going from around $10 to $85. This move is backed by solid fundamentals. Vipshop is expected to grow revenue from $700 million last year to $1.6 billion this year. Profits have gone from nothing in 2012 to $1 in 2013 and maybe $2-3 next year. Today I will take a half position in VIPS in the Growth Portfolio and Aggressive Growth Portfolio. |
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| One-Year Chart | ||
 It’s easy to see VIPS is on a parabolic move. The trouble is if you don’t get in now, you could be totally left behind. VIPS is growing profits in the triple-digits and has a P/E of only 41, less than the expected growth rate of 55% per year. |
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| Earnings Table | ||
 VIPS popped after reporting earnings last quarter. Revenue jumped 146% and profits surged 2500% (the company made only a penny in the year ago period).VIPS beat by 4 cents last quarter. 2QtrsAgo I was not impressed when the company beat by only a penny, yet still the stock rose.Annual Profit Estimates continue to climb. At this point I could see VIPS making $3 next year. Perhaps $5 in 2015?
Quarterly estimates show triple-digit growth should continue well into 2014. These estimates are even increasing. |
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| Fair Value | ||
 VIPS went from making nothing last year to $1 this year and is expected to make $2 next year. Considering 2014 estimates are climbing so fast the company could make $3 next year, and if that becomes reality VIPS is selling for 28 times earnings. |
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| Ten-Year Chart | ||
 This stock is on a hyperbolic move higher. It’s dangerous to get in here so I’m stepping one-foot in just to have some. I feel VIPS could go to $160 by 2015 or maybe much sooner. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
9 of 25 |
Vipshop is on a hyperbolic move higher but this move is backed by solid profits. Although the stock’s high we have to get one-foot in my taking a half position or we might be left out entirely.VIPS is ranked 9th in both the Growth Portfolio and Aggressive Growth Portfolio Power Rankings. I will sell NQ Mobile (NQ) in the Aggressive Growth Portfolio to make room for VIPS. | |
Aggressive Growth Portfolio
9 of 10 |
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