NEW YORK (TheStreet) -- Shares of China Jo-Jo Drugstores (CJJD) are up 18.77% to $3.10 today on heavy trading volume after it was reported that Internet sales of prescription drugs are expected to be legalized in China under new regulations set to become effective around January 1, 2015, according to the Chinese-language Securities Times.
China Jo-Jo Drugstores, a retailer and distributor of pharmaceutical and other healthcare products in China, also operates through its subsidiary Quannuo Technology, which allows them to engage in online retail pharmaceutical sales throughout the country.
The company has established payment methods with banks and online intermediaries such as Alipay, and are cooperating with business-to-consumer online vendors such as Taobao.
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Online sales accounted for approximately 7.5% of the company's retail revenue, and 3.4% of its total revenue, for fiscal 2013, according to Reuters.
About 3.84 million shares of China Jo-Jo Drugstores changed hands by 11:13 a.m. in New York, compared to the average of 79,899 shares.
Separately, TheStreet Ratings team rates CHINA JO-JO DRUGSTORES INC as a Sell with a ratings score of E+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHINA JO-JO DRUGSTORES INC (CJJD) a SELL. This is based on some significant below-par investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally high debt management risk."