Just scrolling through some charts on this quiet day and there is some remarkable action out there.  The hot next generation Chinese internet IPOs really caught my eye since Youku.com (YOKU) (the Chinese Youtube!!) is up nearly 20%.  But that's not the name that caught my eye - instead the chart of E-Commerce China Dangdang (DANG) (the Chinese Amazon.com!) almost had me falling off my chair.  Look at this hot mess that our Wall Street bankers were happy to bring to market to feed the frenzy.  You see who made the money in the end - those very good customers (also known as 'smart money') who dumped the shares day 1 on the public, and the bankers who made the fees.  Anyone else?  A disaster. 

[click to enlarge - but hide the children]

At $5 - heck I may take a second look to see if there is some value.  Market cap is now $430M.  That's down from STUPID 9 months ago.  Sub $500M is probably what the value should have been at IPO.  I remember the price to sales ratios on all these the Chinese version of (insert American internet company) were off the charts. Sadly, I thought this one had a better business model than Youku.

[Dec 8, 2010: Meet China's Newest Billionaire - E-commerce China Dangdang's CEO Peggy Yu Yu]

[Jan 18, 2011:  Morgan Stanley Does *NOT* Initiate Coverage on E-Commerce China Dangdang]

[May 20, 2011: E-Commerce Dang Dang - Paying Up for Growth, not Profits]

No position