Cabeza Howe

Investors Vote 'No Confidence' in TCM's Management

I agree with you on the dentist analogy. Good point. To gamble on Chinese IPOs I would certainly go to others, not TCM. If SCR managed to convert most of its IPO proceeds into RMB why is it TCM couldn't? TCM came to the market a little earlier actually. Management's explanation about foreign currency regulation then must be an excuse. Maybe we should follow up on this. Thanks for the info.

Investors Vote 'No Confidence' in TCM's Management

Capital venture for the right reason can be called "fundamental business sense," that for the wrong reason is called gambling.

Investors Vote 'No Confidence' in TCM's Management

Nobody really has set a standard on the issuing P/E. But your range was about right due to common practice. The recent bubble has pushed the average P/E to the 30 mark (among small and medium sized IPOs). There were reports of average of 28.98 for new issues June thru October. First day activity often tripled the price pushing P/E to 90 or 100. When the bubble still holds, there is certainly hot money to be made. However, have you heard about the "overpackaging" practices where small companies with lousy financials get packaged to the rosy profit and P/E at IPO? And things are sure to unwind when the bubble bursts.