J Capital Research Puts VIPShop (VIPS) Price Target At Zero

Is Vipshop Holdings Ltd up to something fishy? More and more people seem to think so.

Mirtha Forensic Research, an anonymous group of short sellers, put the China-based online discount retailer and flash sales site in the headlines last week with a scathing report alleging the company is manipulating its financials. A separate report from J Capital Research has raised eyebrows as well, though it has flown under the radar.

“It was very, very highly valued when we initiated coverage of it. It was trading at 215 times profit, and that seemed excessive,” said Anne Stevenson-Yang, who authored the report, in a phone interview Tuesday. “When you look at the model and listen to the story, you think it really...