Yoma -- Mynamar play

Funds are sharp and merciless, and know when to get out when stock is over over over priced -- it's the retail investors who chase blindly.

I agree with CCLow and repost his comment in another story on dragon stocks in HK:

C.C.Low - Tuesday, 7 February 2012 15:44Yoma

I sounded out the alarm bell on Yoma, that it was purely a speculative play based on current sentiments amidst the background of Myammar opening up, and that there is no substantial tangible worth in the counter as at this point of time. Buyers should beware and do due diligence study first before dabbling in such a counter. Today it opened at 0.53 and shot all the way up to a high of 0.575. However, in the closing 10-15 mins it was crashing as fast as a bullet, going down to 0.435. I think the "danger" is not over yet.

heard that UOBKH & CIMB clapping down on trading limit for stocks that have gone up a lot. UOBKH is the largest house - don't play play!

In the past 2 weeks, Yoma lost altitude. Plane descending  from 52 cents level  to 37.5 cents now.

Ho Sey la, Made some money today with quick trading. Sold to Phillip for small profit. The new emerging market darling is coming now. Better buy first.

I cannot believe that people will buy Yoma at the current level of 50+ cent.
Even a bull like OcBC is forecasting only S$6.3 m net profit FY12, and FY13.

But the market cap is S$530 M or so, which means it is trading at around 84X PE.

If you are old enough, you will remember this sort of crazy valuation was prevalent before the Internet bubble burst etc.

Why buy Mynamar play when there are solid stocks selling for 5X PE and solid dividend yield of 5-8%?

I may be a sceptical long-time investor who has seen hot themes appear in the market and the relevant stocks get swept along to high PE valuations on prospects of fantastic earnings by companies.

And I have seen them come down to earth in due course.

I think Myanmar is the latest such theme. It will turn cool in due course. Be careful.