58.com (WUBA) is considered the Craigslist of China. The stock has more then doubled in price since its IPO in November 2013 and is currently setting up a first stage cup and handle base. Volume patterns have been mostly bullish with several weeks of tight closings inside the handle area showing institutional support.
The company delivered triple digit sales and earnings growth in the most recent quarter and is expected to grow sales and earnings over 50 and 100%, respectively, over the next three years. Margins have expanded from 3.2% to 15.6% over the last three quarters with return on equity registering over 50%.
Based on current valuations, the stock could double again over the next 12 - 18 months if it can breakout above the $55 - 57.50 range. A shakeout below the $48 handle support area could present an earlier entry into the stock for aggressive investors/traders.