Stock pick Vipshop Holdings (VIPS) came out of the recent correction sporting a nice, double-bottom chart pattern, and was featured in my October 19th subscriber update with a $198.00 buy point. The company is a large discount online retailer in China, and has an advantage in that it offers merchandise that is not offered on Alibaba’s (BABA) Taobao marketplace.

Around the same time, Bloomberg featured Vipshop Holdings in an article in which JG Capital said that “investors see a cheap valuation, and they are buying in at this point.” The article went on to say that the stock had lost 26% of its value and this had pushed the company’s valuation to a 10-month low.

(Chart provided courtesy of Stockcharts.com)

Vipshop Holdings (VIPS) offers a range of branded products, including apparel for women, men, and children; fashion goods; cosmetics; home goods and other lifestyle products; footwear; sportswear and sporting goods; luxury goods; and gifts and miscellaneous products.

The company’s sales jumped 125 percent in the third quarter from a year ago, according to the mean of nine analyst forecasts compiled by Bloomberg, and is slated to release its earnings on November 11th.

I welcome your comments!

–pj