Talk of trade wars became a reality this last week but many still hold out to the view that these ar...
01/09/2014 5:00 am EST
There is no rational way to figure out which emerging market stock will come out on top a year from now. Emerging markets are just too volatile for long-term projections, cautions Paul Goodwin, editor of Cabot China & Emerging Markets Report.
Nevertheless, I'm picking a stock based almost entirely on its story, which I think has the potential to be huge. The company is LightInTheBox Holding (LITB) and it's a Chinese company that operates a global online retail site.
LightInTheBox offers customers around the world a chance to buy customized products (like wedding gowns) direct from factories at low prices.
The company's Web sites are available in 27 languages and are reachable by 80% of global Internet users. The company has been growing revenue fast (98% growth in 2011, 72% in 2012) and turned a profit in Q4 2012 and Q1 2013.
LITB has been in a downtrend since its August earnings report disappointed traders, falling from a high of $23 to around $8 in recent trading.
The company announced, in December, a share repurchase program of up to $20 million for its American Depositary Shares to run through December 2014.
There's no doubt that there's risk in LITB, but the potential is also huge. And, at current levels, it's a reasonable buy; just keep your stops handy.
Related Articles on GLOBAL
In MoneyShow's Top Picks 2018 report published at the start of the year, Scott Chan chose TAL Educat...
In MoneyShow's Top Picks 2018 report published at the start of the year, Timothy Lutts chose GDS Hol...
Liberty Global Plc (LBTYA) is the world’s largest international TV and broadband company, with...