{"id":5677,"date":"2011-06-28T14:07:04","date_gmt":"2011-06-28T18:07:04","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=5677"},"modified":"2011-06-28T14:07:04","modified_gmt":"2011-06-28T18:07:04","slug":"dangdang-slides","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2011\/06\/28\/dangdang-slides\/","title":{"rendered":"DangDang Continues Sliding Despite Promise of Insider Buying"},"content":{"rendered":"

(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece<\/a>.)<\/strong><\/p>\n

You know something is broken when the CEO of a company promises to spend over $1M of her own money and the stock still falls over 20%. This is the current problem with China DangDang, Inc (DANG), a Chinese e-commerce company. On June 20, co-founder Peggy Yu Yu, appeared on CNBC’s strategy session<\/a> to talk about the virtues of DANG. She explained why she and her family plan to buy back $2M of company stock over the next six months:<\/p>\n

{snip}<\/p>\n


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I believe this is the first time I have ever heard a CEO include concern for the value of employee stock options as a reason for buying stock. The sentiment worked as DANG rose sharply throughout the interview. <\/p>\n

{snip}<\/p>\n


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\"DANG<\/a>
DANG soars as CEO interview rolls on<\/figcaption><\/figure>
\nSource: Yahoo! Finance<\/a><\/strong>
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{snip}<\/p>\n

Below, Yu Yu explains DANG’s business in late 2009<\/a> and includes details on the unique delivery system of couriers that use cash on delivery (“human ATMs”) in lieu of credit cards:<\/p>\n


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