Sell: Vipshop Holdings (VIPS)
from Cabot China & Emerging Markets Report
Updated from Investment Digest 754, February 19, 2014
Vipshop Holdings (VIPS) is a nice long-term growth story, but we’ve decided to sell our shares tonight. We know there have been lots of accounting rumors out there, but that really isn’t affecting our thinking. More important to us has been the fact the stock has fallen about 20% from its highs (it’s not much higher now than it was back in November), with big-volume selling on the way down, and the stock has had an enormous run during the past few years.
In other words, this is a late-stage issue that is starting to wobble, so we think it’s best to take our chips off the table. SELL.
Paul Goodwin, Cabot China & Emerging Markets Report, www.cabot.net, 978-745-5532, May 21, 2015