CCTV Alleges Wrongdoing by E Commerce China Dangdang, Shares Sink

Holders in shares of E Commerce China Dangdang DANG are in an uproar Wednesday following a scathing report from China's CCTV. The stock plunged nearly 8 percent immediately after the report started making the rounds; shares have since bounced off lows, but are still down about 6 percent to $15.90 at last check. The report suggested Dangdang receives cosmetics from wholesalers rather than the "authentic" sources which the company has long advertised. The CCTV article cited an Estee Lauder spokesperson who confirmed an inconsistency in a Dangdang offer versus the official channels. The claims stemmed from a recent survey conducted by CCTV. Despite Wednesday's weakness, shares of Dangdang are sticking unrelentingly near the $16 region of support which was breached just days after a solid fourth-quarter report on Feb. 27th.