Long Position on WUBA @ $46.20 on 6/16/2014 (Momentum)

58.com Inc. (WUBA) operates online marketplace for local merchants and consumers in the People’s Republic of China.

Its online marketplace enables local merchants and consumers to connect, share information, and conduct business. The company’s online marketplace contains local information in approximately 380 cities in various content categories, including housing, jobs, used goods, automotive, pets, tickets, yellow pages, and other local services.

It offers membership services, such as merchant certification and listing benefits, as well as display of online storefronts; and online marketing services comprising listing services, such as real-time bidding and priority listing, and marketing services through collaboration with third party Internet companies.

The company’s online marketplace also provides merchants with a marketing channel to reach a broad and targeted local consumer base. 

Shares have formed a bullish "cup and handle" and higher share prices are expected for this stock. 

52-Week Trading Range: $21.15 - $58.89

Entry Point: $46.20

Stop Loss: $43.85

Target Price: $50.80   

Updates

6/20/2014 12:00:32 PM

WUBA fell below our stop loss of $43.85. Closed at $43.65.

Position closed on 6/20/2014 at price of $43.65 with a -5.52% loss in 4 days.

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