China Zaino - the unappreciated backpack

China Zaino made the trading debut today, close at 0.48 down 0.12 from the IPO price of 0.60. If I say, at 0.60, it represent a good buy then it is now a better buy. Of course, on the subject of valuation, it is always subjective. Different people uses different metric and assumption to value the company. Especially, at a bearish time, the valuation tends to be conservative and negative. Using simple valuation technique, I think it is good buy. For who uses more complicated method, he/she has every kind of reason to suggest it is otherwise. It is up to individual.

Another aspect to this is regarding the market sentiment. It doesn't help that China shares were being sold off widely today following the China market. In a weak market, without strong investor interest, we know the fate of the issue. But, market is not always right, to make money, we have to think objectively and independently.

The success of China Eratat (for not going under) could be due to generic interest in the China sports market. In 3 to 6 months time, we are unlikely to see a strong interest, unless the company shows a sterling result and flawless execution. Beware of the upcoming IPO!