E Commerce China Dangdang Sees Heavier Competition Fom 365 (DANG)

E Commerce China Dangdang DANG, the newly released Chinese IPO, has been in price wars with Amazon AMZN and another Chinese firm called 365, which engages in electronic and computer gear. Recently 365 decided to implement 20% price cuts on all retail sales. This strategy does not only impair gross margins, but hurts the whole retail market in China. DANG is trading downward today; it was last trading at $22.94, down 7.8%. From a fundamental standpoint, E Commerce China Dangdang has a viable business model, as it continues to gain momentum. Look for DANG to consolidate on light volume before entering the stock, in the weeks to come.