Since losing $8,000 on China Enersave in 2008, I swore never to touch any S-Chips again in my life. Like many investors, I had bought into S-Chips because of China growth story. But a spate of corporate scandals had given S-Chips a bad reputation that subsequently led to a serious crisis of confidence among investors. Today, I do not believe in the investment merits of S-Chips anymore. Nevertheless, at the request of a member, this article will discuss the case of Midas Holdings.
Every stock has its own story. Midas Holdings began life when it was founded in 2000 and listed in Singapore stock exchange in 2004. It also has a secondary listing on the Main Board of The Stock Exchange of Hong Kong.
As a manufacturer of aluminium alloy extruded products for the passenger rail transportation sector in the PRC, Midas has an established track …