2009-07-04

Bawang (霸王) Coming to Market

South China Morning Post: Bawang and Qinfa surge before debut
Bawang, one of the top four shampoo retailers on the mainland, climbed 28.99 per cent to HK$3.07 from an offer price of HK$2.38 in the unofficial market yesterday, while coal trading firm Qinfa rose 12.3 per cent to HK$2.83, compared with the offer price of HK$2.52.

With the Hang Seng Index just completing its best quarter in more than 15 years, increasingly bullish investors are looking for new opportunities.
Exactly right. This is a bull market phenomena fueled by a near complete reversal from fear to greed.
"I believe Bawang is going to have a better debut performance than newly listed sportswear maker 361 Degrees [International]," said Mr Shiba. "The IPO market is so hot."

Shares in 361 Degrees rose as much as 18.56 per cent from the offer price of HK$3.61 before closing 8.03 per cent up at HK$3.90 on their trading debut on Tuesday. The stock finished 6.92 per cent lower at HK$3.63 yesterday.
Bawang (霸王) closed lower, at HK$3.03, following a similar path to 361 Degrees. There appears to be a lot of buying interest, but not a lot of holding interest. As the speculative fever fades, the price declines. Not sure if I would buy either stock, but I think they'll both offer lower entry points.

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