Photo by big-ashb

Bearing in mind the problems facing S-Chips in Singapore and that I was looking for “good” S-Chips to invest in because China remains one of the few global economies to still register positive GDP growth. My so called safe S-Chips would include Straco Corporation and Midas. I used to own Sinomem before and remember selling the shares at the $1.00 level only to see them rise to a high of $1.60. The shares are now trading at the $0.17 to $0.18 level. Several factors contributed to the share price:

a) the loss in FY2008 of S$0.7mn from a profit of S$33.1mn in FY2007 mainly from impairments and problems at Reyphon

b) concerns about S-Chips and the integrity of their balance sheets

c) fund manager redemptions in the shares. Read more…