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Shares of Dangdang (DANG) have lost $100 million off of their market cap, because on Monday the company announced the CFO Conor Chia-huang Yang has resigned for personal reasons. It must not be a terrible reason, certainly not enough to erase this much in market cap, as the company announced that Conor will remain with the company for a transition period up to three months. The price has dropped 25% from a close of $10.19 on Friday April 13th to its current price of $8.16 as I type. I believe this dramatic of a sell off is unwarranted and offers a superb entry point.

I wrote a couple of weeks back, that I feel DANG could be trading at $750 a share in 5 years, and a personal resignation of the company's CFO does not change my vision of the future of this company and its stock price. No other executives have announced their resignation from the company since its IPO in 2010, and Chairman Peggy Yu and CEO Guoqing Li remain in charge. In fact, since I have written my article, Dandang has announced that it will introduce merchandise from Taiwanese TV shopping channel Eastern Home Shopping & Leisure (EHS) in May, which will be the first example of cross -strait cooperation between an internet and a TV shopping channel. Dangdang will be the exclusive provider of EHS products in China.

I feel strongly that this sell off is overdone. The CFO resignation appears amicable, the EHS agreement will provide the company with yet another revenue stream, and in my opinion, at these prices DANG offers an excellent entry point.

Source: Dangdang: Buy Opportunity