Vipshop (VIPS) is one of the largest flash sale ecommerce websites in China. It has approximately 300,000 sqm warehouse space and 3.5 million active customers, with high double digit revenue growth outlook. The company went public in March 2012 at $6.5 per ADR. The IPO had a weak reception; the stock was range bound for 6 months traded between $4.5 to $6. However, after a strong earnings announcement in Q3 2012 with company generating positive income, the market realized that VIPS is a real business with strong fundamentals and competitive advantage, unlike Mecox (MCOX) or Dangdang (DANG). VIPS shares went from $5 to $50 in about a year driven by multiples expansion and...
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