Today’s 2014 Top Picks update is a Chinese direct-selling company whose management recently increased its second-quarter revenue projections to $86 million to $88 million, from its previous forecast of no more than $86 million.
Light in the Box (LITB)
from Cabot China & Emerging Markets Report
There’s no denying that Light in the Box (LITB) is a risky proposition. This direct-selling company lets global buyers order customized items like wedding gowns at bargain prices and ships them directly from the factory.
It’s a brilliant business model, but it requires stringent cost controls and efficient delivery, which the company has been able to deliver so far.
In late June, Light in the Box raised its second-quarter revenue projections, which caused a nice pop in the chart. And the stock has held up well during the July correction. It’s a hit-or-miss stock, but I like the upside potential.
Paul Goodwin, Cabot China & Emerging Markets Report, www.cabot.net, 978-745-5532, July 9, 2014