Lead: U.S. Investment analysis website Fool.com Tuesday published an article said that in the face of the Nyse:vips and Orchid Pavilion (NYSE:LITB) challenges, if you want to continue to maintain the current market position, when (Nyse:dang) must find ways to accelerate revenue growth.
The following is a summary of the article content:
Investors are bracing for another big loss when they release their third-quarter financial results for the 2013 fiscal year ending September 30, before the U.S. stock market opened in the eastern time of November 14, 2013 (Beijing Time November 14). Faced with the challenges of only goods and orchid Pavilion, if you want to continue to maintain the current market position, when you must find ways to accelerate revenue growth.
In the two-year period since the end of 2010, when it was only one of China's many unsuccessful IPO companies. This April, when stock prices were only 85% of the IPO price. But more recently, as China's economic recovery signs more and more obvious, when the share price doubled. This time, when can you take the chance?
In recent months, analysts have been optimistic about the prospects for profitability, which has lowered the forecast for the third-quarter deficit by 1/4 and lowered the forecast for the 2014 fiscal year by 40%.
When the results of the second quarter showed that it was difficult to satisfy investors. In the second quarter, when revenue rose by 24%, the loss was reduced, but the share price fell by more than 10%.
As for the third quarter, when the reason for investor nervousness has been given, the revenue forecast will be lowered from 260 million to 250 million dollars. When said, it is the company's intention to sacrifice revenue gains to focus on high-margin products, thereby enhancing profitability. But that would make it more straightforward to bump into other major competitors in the field, including Taobao.
At the same time, the competitor's performance is very eye-catching. Through the flash-buy model, only goods will have been profitable. Only the goods will have just released the third quarter of fiscal year 2013 earnings, revenue growth of 146% year-on-year, and swung. The pavilion has not yet released its third-quarter earnings but is expected to grow by 44% in fiscal year 2014.
In addition, some short sellers sometimes accuse Chinese small listed companies of financial fraud, which will inevitably affect investor sentiment, and when it will be implicated.
For the upcoming third quarter earnings, it is worth focusing on whether the revenue can meet the company's guidance expectations. If you can keep up with the gains, when there is still a great opportunity to recover the recent losses.