Mecox Lane, the first publicly listed online retailer in China, was sued by investors after reporting a disappointing third quarter report.

The company was listed on October 26 in Nasdaq. At its debut, its share raised as much as 68%, as investor grab a piece of the online garment and appeal retailers. Everyone believe it will be a winner. At US$17.26 a share, Mexco Lane’s is selling at 157 times earning. In comparison, Amazon was only trading at 47.5 times earing.

But after it reported its third quarter result, investors’ mood changed 180 degree. Its share dropped 40% on Nov 30 and another 18% on Dec 1. Its share price was as low as US$6.45, before recovering to US$7.8 last Friday.

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Sherman So

Author of Red Wired: China's Internet Revolution, the first book to completely survey the nature of China's internet. (http://redwiredrevolution.com/) She previously was the lead China technology reporter...