Mr. Jun Zou, the chief financial officer (“CFO”) of E-Commerce China Dangdang Inc. (DANG) recently announced his decision to step down for personal reasons, effective from Apr 10, 2014.
The company has begun its search for a new candidate. During the search phase, Peggy Yu Yu will act as the interim CFO. Yu Yu is a co-founder and has been acting as executive chairwoman since the company’s inception. Her extensive knowledge will continue to guide the company till a new director is appointed.
E-Commerce China Dangdang is a leading business-to-consumer e-commerce company in China. It sells books and media products and general merchandise through its website dangdang.com. Apart from its own products, it also allows third party merchants to sell their products under the dangdang.com marketplace program.
Over the last four quarters, the company has been witnessing a positive trend and has registered an average positive surprise of 59.24%. On Feb 27, 2014, this Zacks Rank #2 (Buy) company posted fourth quarter results with earnings and revenue beating the Zacks Consensus Estimate. The results were driven by the company’s strategy to transform from an online bookstore into an integrated online shopping mall targeting mid-to high-end consumers. Since the announcement of its results, the company’s share price has witnessed an upward trend. For the first quarter of 2014, the company expects revenues to be up 30.0% year over year.
Other players in the Internet industry, which look attractive at current levels, include Monster Worldwide, Inc. (MWW) and Vipshop Holdings Limited (VIPS). Investors can also consider Diebold, Incorporated (DBD), a stock from the computer integrated systems industry. All these stocks carry the same Zacks Rank as E-Commerce China Dangdang.
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