This seemed to be one of the most spectacular IPO that I have seen after Sheng Siong, with the share price being driven up by 50% from its original IPO price of $0.49. At the current price of 20, seemed like people is treating it as a healthcare stock like RMG and Q&M Dental.
On the surface, the business model does look pretty enticing. It is the market leader in Singapore with a market share of 62% and the market is still relatively untapped at only 25%. CAGR is expected to be 9-10% till 2015 and competition is weak with 2 other competitors - Stem Cord and a public cord blood bank. Most importantly, it has a recurring income as after you deposit with them they will continue to recognise revenue over the next 18 years. On a closer examination, this stock is more like a rose where the ...
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