Coverage Performane: Down 3.5% in One Day

After my first Seeking Alpha article coverage on Vipshop, the share price of Vipshop (VIPS) dropped almost 3.5% in the next trading day, which is more than any market or factor model would suggest. It is a mini experiment to see how efficient the market is on Vipshop. Given that Vipshop is trading with market cap of over $6 billions and followed by more than 13 sell-side analysts, I would expect the share price of Vipshop should have already impounded the information in my reports. In fact, sophisticated investors should be able to obtain the same information contained in the article a few weeks ago. To my surprise, that is not the case. Is this due to language barriers as many investors fro the U.S. don't understand Chinese?

Recent Slowing Vipshop Traffic Signals For Exit/Short

Shares of Vipshop (VIPS) had a strong rally over the past two weeks, providing an excellent opportunity to cash out or sell short ahead of looming uncertainty over its business momentum. The current share price level is mainly supported by the company's bright future prospects projected by analysts. The management team is under enormous pressure to deliver strong growth and has made a huge investment in advertisements recently. Despite the large amount of spending on advertising, Vipshop hasn't been able to sustain strong growth momentum in website traffic in 2014 so far. The recent announcement of an acquisition is unlikely to significantly alter the fate of the company.

Details:
http://seekingalpha.com/article/2029161-recent-slowing-vipshop-traffic-signals-for-exit-short?source=yahoo