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
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