This is a disaster to many retail investors in IPO.
Healthway Medical, share offer price at 36 cents and closed at the lowest 22.5cents on the debut day. A cool 37.5% loss in just one day!
What disturbing me are reading these lines prior to the opening on 4 July 2008:
Healthway Medical, share offer price at 36 cents and closed at the lowest 22.5cents on the debut day. A cool 37.5% loss in just one day!
What disturbing me are reading these lines prior to the opening on 4 July 2008:
What a good news! Despite all the bearish condition, this IPO has gained 6.6 times over subscription! But what has happen on 4 July 2008 is a clear reflection of a different story: The stock promptly dropped after opening bell at 24 cents and finally settled at the lowest 22.5 cents at the closing bell.
This stock is clearly overpriced at more then 27 times price earning ratio (PER) when its peers trading at lower then 13 times. The closing price of 22.5 cents valued the company at 17 times PER.
I am not too sure how 449 good investors have pooled the fund to subscribe 6.6 times the disaster shares. Lack of education probably the only reason to blame.
The only extraordinary advantage of this company is that they have one of the most handsome CEO in Singapore.
This stock is clearly overpriced at more then 27 times price earning ratio (PER) when its peers trading at lower then 13 times. The closing price of 22.5 cents valued the company at 17 times PER.
I am not too sure how 449 good investors have pooled the fund to subscribe 6.6 times the disaster shares. Lack of education probably the only reason to blame.
The only extraordinary advantage of this company is that they have one of the most handsome CEO in Singapore.
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