Top S-chips (how they have done in 3 weeks)

HUGE sell down of China Zaino! What happened leh?

really don\'t know...I think everyone dumbfounded...maybe a huge fund selldown or short sellers or what ever...nothing to do with fundamental anymore...so it seems..

During extreme bear market scenarios, the market will discount all future growth and assume the worst that can happen; thus this is what you will see being reflected in share prices - extreme pessimism. To sift out the wheat from the chaff is not an easy task, and requirs in-depth study of all aspects of the Company in question including (of course) its financials over the past 3-5 years to decide if it is investment-quality.

For Zaino they are a new company fresh from IPO...not much track record apart from what\'s in their IPO and also several \'buy\' reports from analyst.

I think what investors have to realize is that in a bull market (i.e. frothy valuations abound), there tends to be a lot of mediocre companies going for IPO, as compared to during a bear market where hardly any companies IPO at all. This is NOT a direct gauge of the quality of individual companies, just a general statement which I remember reading from Benjamin Graham\'s \"Intelligent Investor\". If you compare the quantity of IPOs in 2006 and 2007, you will notice that they are much more than for 2008 (and probably 2009 as well).

ok it\'s a generalize statement..regardless the bear market was already well underway in FY08 and valuations were not entirely excessive. In addition the companies balance sheet is significantly bolstered by new capital and such are in an enviable position if they manage cash well.