Sport player, priced for perfection?

A short note on today's Kim Eng report on China Sports Intl. China Sports is rolling out new product and plan to raise retail price. They also sponsoring the Slovakian Olympic team and raising advertisement spending. The outlook remains positive.

In last paragraph, "While China Hongxing’s recent placement has dampened sector sentiment somewhat, we believe the sportswear sector will still do well. It is a matter of balancing growth and costs, taking into account stock valuation as well. While both companies are participating in the sector’s growth, CHHS is priced for perfection and cannot afford to slip up. As such, we believe the risk-reward is tilted more in CSI’s favour."

"Priced to perfection" is what usually the market do, when people become overly enthusiastic with the company and the story it is selling. It does not protect one with the margin of safety advocated by value investment guru. How true it is! At the peak, one could not afford to slip up too much. While at the bottom, room for going down is limited, but there is high probability to charge upwards.