Today’s new Top Pick for 2014 is an emerging market company with a new stock repurchase program and interesting potential.
LightInTheBox Holding (LITB)
Cabot China & Emerging Markets Report
There is no rational way to figure out which emerging market stock will come out of top a year from now. Emerging markets are just too volatile for long-term projections. But I’m picking a stock based almost entirely on its story, which I think has the potential to be huge.
The company is LightInTheBox Holding (LITB), and it’s a Chinese company that operates a global online retail site. LightInTheBox offers customers around the world a chance to buy customized products (like wedding gowns) direct from factories at low prices. The company’s websites are available in 27 languages and are reachable by 80% of global Internet users.
LightInTheBox has been growing revenue fast (98% growth in 2011, 72% in 2012) and turned a profit in Q4 2012 and Q1 2013.
The shares have been in a downtrend since the company’s August earnings report disappointed traders, falling from a high of $23 to around $8 in recent trading. LightInTheBox announced in December a share repurchase program of up to $20 million for its American Depositary Shares to run through December 2014.
There’s no doubt that there’s risk in LITB, but the potential is also huge. And at current levels, it’s a reasonable buy; just keep your stops handy.
Paul Goodwin, Cabot China & Emerging Markets Report, www.cabot.net, 978-745-5532, December 24, 2013