From Marketwatch,
At times like this, fundamentals get removed from the investor lexicon, as mass psychology takes over. Fear has been replaced by that more painful emotion: missing out.
That’s one way to look at the new Sinopharm IPO that has taken in $113 billion in orders, including a 600-times subscription for the retail portion of the issue.
No, the company hasn’t found a cure for cancer, but is simply a distributor of pharmaceuticals in China and comes at a steep 25 times its 2010 earnings. The only numbers under scrutiny are the amount of money chasing the issue and level of margin financing on offer.
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