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The Chinese Bubble Fiasco, When “Expensive” Doesn’t Batter Eyelids
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U77
By: Louis Kent Lee
Articles (199) Profile

In case you have missed the noise or volume seen in stocks listed on the Shenzhen Exchange, boy do I have to tell you, what expensive really could mean.

Some of the most expensive stocks in terms of valuation using price earnings (PE) multiples, command PE valuations of more than 1,000 times.

In fact, Searainbow Holdings Corp (Searainbow), was recently highlighted in a Bloomberg article as one of the most expensive stocks trading on the Shenzhen Exchange, with a PE valuation tagged at some 10,000 times.

Strangely, even though when Searainbow was trading at PE of 5,000 times, it continued moving up and doubled its valuation over a short period of time.

In the lion city, an open letter written to Noble Group’s 15,000 employees have reflected previous points made by Iceberg Research.

Specifically, it was revealed that the disclosures behind Yancoal’s valuation treatment was still not explained clearly, also, how much inventory buy backs were carried out was also questioned in the letter as well.

Noble’s shares were seen sliding for most days of the trading week.

Shifting the focus to a brighter lit scene, the JCK trade show in Las Vegas have shown signs of positivity for demand of improved polished diamonds, which may eventually spur rough diamond manufacturing.

This bodes well for Sarine Technologies and Maybank Research has maintained its BUY call with a target profit of $3.07.

Louis is a qualified accountant with the ACCA, and is the Research Editor at Shares Investment magazine.

Please click here for more information about this author.

Sarine Technologies  0.320 -0.010 -3.03%   
Business: Co manufactures & sells precision technology products for the processing of diamonds & gemstones. [FY18 Geographical] India (66.5%), Africa (12%), others (10%), Israel (5.8%), Europe (3.9%) and North America (1.8%).

Insight: May-19, 1Q19 revenue decreased by US$5.7m to US$10... Read More


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