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When It Rains It Pours: Shares Of Chinese Umbrella Manufacturer Rise 2,700%

Tyler Durden's picture




 

As mentioned previously, China’s world-beating equity rally is the gift that keeps on giving, and not just for those who are riding the inexorable, margin-fueled rally. The mania also provides quite a bit of comic relief for those of us who are, on a daily basis, inundated with hundreds of depressingly absurd Greek soundbites and hoplessly clueless central banker ruminations.

Valuations have skyrocketed in China, with the median PE on the Shenzhen sitting at a cool 108X, which looks impressive until you consider that the ChiNext trades at 133X. The siren song is in fact so alluring that some US-listed Chinese tech firms are repatriating because they feel they aren’t getting the valuations they 'deserve.'

“American investors don't understand the business model," one Chinese tech executive recently told Reuters.

One business model that’s easy to understand is that of Hong Kong-listed Jicheng Umbrella Holdings Limited. As you might have guessed from the name, the company designs, researches, manufactures and sells plastic umbrellas. That’s really all you need to know to appreciate the following chart which shows that shares have risen some 2,700% since February 13 (also note the annualized figure)... 

*  *  *

What bubble?  

 

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Mon, 06/08/2015 - 22:03 | 6176982 Yen Cross
Yen Cross's picture

  It's all "ball-bearings" these days.

 Arghhh?
  
 18:30       CNY         CPI (MoM) (May)     -0.2%     0.0%     -0.2%      
18:30       CNY         CPI (YoY) (May)     1.2%     1.3%     1.5%      
18:30       CNY         PPI (YoY) (May)     -4.6%     -4.5%     -4.6%

Mon, 06/08/2015 - 22:05 | 6176984 Publicus
Publicus's picture

You could have bought any time during the past 4 months and you would have a winner in your hands to sell instead of sour graping right now.

Mon, 06/08/2015 - 22:12 | 6177004 Yen Cross
Yen Cross's picture

 My name is PUBLICUS. Greek extrordinaire.

Mon, 06/08/2015 - 22:18 | 6177025 tarabel
tarabel's picture

 

 

Isn't that Latin?

Mon, 06/08/2015 - 22:20 | 6177030 Yen Cross
Yen Cross's picture

 Erectus Maximus, is Latin  /s

Tue, 06/09/2015 - 00:18 | 6177310 Boris Alatovkrap
Boris Alatovkrap's picture

Secret to successful of China umbrella manufacturer:

Yuan wok in lein, uma su bai anbu le la. Su pu lai an di man.

 

Tue, 06/09/2015 - 00:23 | 6177322 TruthInSunshine
TruthInSunshine's picture

http://www.cnbc.com/id/102742478

Another 3.6 billion in bailouts for Corinthian College students in debt:
US will erase student debt for Corinthian students

6 Hours Ago

The Associated Press

The federal government will erase much of the debt of students who attended the now-defunct Corinthian Colleges, officials announced Monday, as part of a new plan that could cost taxpayers as much as $3.6 billion.

Corinthian Colleges was one of the largest for-profit schools when it nearly collapsed last year and became a symbol of fraud in the world of higher education and student loans.

According to investigators, Corinthian schools charged exorbitant fees, lied about job prospects for its graduates and, in some cases, encouraged students to lie about their circumstances to get more federal aid.

Tue, 06/09/2015 - 01:07 | 6177397 Rock On Roger
Rock On Roger's picture

Boris been gone long time.

 

Who the fuck cares about umbrellas?

Tue, 06/09/2015 - 02:19 | 6177497 Zero Point
Zero Point's picture

Mrs Wong.

Tue, 06/09/2015 - 04:08 | 6177591 Laowei Gweilo
Laowei Gweilo's picture

never underestimate chinese big mothers

same thing when gold started to crash in china hahaha

chinese culturally send way too much money to their parents and their parents are typically crazy investors or gamblers because they still can remember being starving and homeless under mao

always aaaaalways looking for buying ops

Tue, 06/09/2015 - 10:39 | 6178504 discopimp
discopimp's picture

Yeah Boris is back!!  I shouldn't be however, but can't seem to get enough of ZH Doom Porn

Sat, 07/04/2015 - 15:17 | 6269544 garypaul
garypaul's picture

Cha-Ching! Umbrella Company 

Mon, 06/08/2015 - 22:05 | 6176986 Budnacho
Budnacho's picture

How good are the umbrellas from breaking Bankers falls from the 50th floor?....thats the REAL test

Tue, 06/09/2015 - 02:31 | 6177515 Bunga Bunga
Bunga Bunga's picture

Thankfully quality is like everything from China.

Mon, 06/08/2015 - 22:06 | 6176992 tarabel
tarabel's picture

 

 

Repatriating because they feel they aren't getting the valuations they deserve...

Oh, they're going to get what they deserve all right.

The collapse of this South Sea Tulip Dot Com charade is going to be one that will be told around flickering campfires for centuries to come.

Probably because that's all that's going to be left of civilization once it occurs. 

Mon, 06/08/2015 - 23:33 | 6177227 Mentaliusanything
Mentaliusanything's picture

There no can be acollapse, as the barriers to entry into the umbrella market areso high and so expentive. You see you no understand the Chinese way. We no carry raincoat anymore

Tue, 06/09/2015 - 00:15 | 6177302 tarabel
tarabel's picture

 

 

With six thousand (percent), you get eggroll.

Mon, 06/08/2015 - 22:09 | 6177001 nmewn
nmewn's picture

"It qwan always row to 5,000%! Buy Da Frucking Dwip!" - Mao Blank Fwein

Mon, 06/08/2015 - 22:11 | 6177007 disabledvet
disabledvet's picture

HEY, ROCKY...WANNA SEE ME PULL A RABBIT OUT OF A HAT?

Mon, 06/08/2015 - 22:17 | 6177019 Yen Cross
Yen Cross's picture

NOT Really.

  I'd like to see you quit using Zero Hedge, as your mental connection to reality..

 There's plenty of people that can help you DAV.

  Pull your head out, and start listening to the free advice. 

 

Mon, 06/08/2015 - 22:18 | 6177020 Yen Cross
Yen Cross's picture

dup

Mon, 06/08/2015 - 22:18 | 6177022 Yen Cross
Yen Cross's picture

 dup

 

Mon, 06/08/2015 - 22:12 | 6177011 Ginsengbull
Ginsengbull's picture

When monsoon ends, only fools carry umbrella.

Mon, 06/08/2015 - 22:32 | 6177062 nink
nink's picture

I think you are forgeting about the US Grilled Cheese Truck http://www.zerohedge.com/news/2015-02-09/bubble-meet-25-million-grilled-...

Mon, 06/08/2015 - 22:47 | 6177100 adr
adr's picture

You know Tesla has to sell around five million cars to justify its market cap.

How many fucking umbrellas does this company need to sell to justify its 5 million % annualized return?

A $100 investment would give you a $5 million return in a year!!!!

From an umbrella company???

And this isn't a bubble?!??!!

The Chinese don't give a shit what it is. They will chase anything if someone says they can get rich. From living in a factory dorm to buying Bugattis in four months. 

There is also some filthy tribesman laughing all the way to the bank while he plays behind the curtain.

Tue, 06/09/2015 - 10:15 | 6178400 astoriajoe
astoriajoe's picture

(deleted after reading the next guy's comment)

Mon, 06/08/2015 - 22:59 | 6177136 Blopper
Blopper's picture

It's a very super advance umbrella company.

It develops anti-gravity umbrellas.

It develops personal teleporter umbrellas.

It develops space-warp umbrellas.

It develops advanced & weaponized anti-bio-organic umbrellas.

Etc, etc, etc.

It is worth trillions.

This 2700% rally is chump change.

Mon, 06/08/2015 - 23:00 | 6177138 squid
squid's picture

The chinese LOVE to gamble.

Mon, 06/08/2015 - 23:03 | 6177149 Bunga Bunga
Bunga Bunga's picture

Climate change is bullish.

Mon, 06/08/2015 - 23:06 | 6177161 q99x2
q99x2's picture

Hong Kong revolution is spreading.

Tue, 06/09/2015 - 02:05 | 6177476 old naughty
old naughty's picture

Nah, it took 48 (from '67) years, longer than American Pharoah to repeat the feat...so next one is '63.

Besides, umbres are for sunsreening in China. Every female got more than one.

Mon, 06/08/2015 - 23:19 | 6177199 SmilinJoeFizzion
SmilinJoeFizzion's picture

Screaming buy

Mon, 06/08/2015 - 23:19 | 6177201 SmilinJoeFizzion
SmilinJoeFizzion's picture

Sarc/

Mon, 06/08/2015 - 23:19 | 6177202 SmilinJoeFizzion
SmilinJoeFizzion's picture

Sarc/

Mon, 06/08/2015 - 23:36 | 6177237 Soul Glow
Soul Glow's picture

Everyone in China needs an umbrella to keep the soot off them when it rians.

Mon, 06/08/2015 - 23:40 | 6177242 reader2010
reader2010's picture

Need to get used to it.

Mon, 06/08/2015 - 23:43 | 6177249 ebworthen
ebworthen's picture

"Extlemely good umbrerra!  Rots of rain coming too!"

Mon, 06/08/2015 - 23:46 | 6177254 henry chucho
henry chucho's picture

When the Ka-chink umbrella companies market cap surpasses Google's in 6 months,they are planning to buy Exxon Mobile,in a straight stock for equity swap..

Tue, 06/09/2015 - 00:32 | 6177339 mijev
mijev's picture

To be fair, every chinese female has an umbrella supply to keep the sun off their faces and to poke out the eyes of passing waiguoren. A white complexion is a huge beauty feature. They're not as ubiquitous as chopsticks but it's still a huge market. A couple of years ago I heard that an Atlanta based company exports millions of chopsticks to China every day because the South has plentiful supplies of the right wood. If you travel through China there is an amazing amount of beautiful green scenery but if you get close, the trees are all spindly and unhealthy.

Tue, 06/09/2015 - 02:33 | 6177521 Peter Pan
Peter Pan's picture

I can't understand why everyone thinks this stock is overvalued. If it has been crazy this far, then who is to say it won't get even crazier?

Tue, 06/09/2015 - 02:43 | 6177533 Dr. Bonzo
Dr. Bonzo's picture

It's the Apple of umbrella companies. MUST own umbrella. I get it.

Tue, 06/09/2015 - 03:38 | 6177571 Panic Mode
Panic Mode's picture

That's the only way for the average Fuk to afford a Bentley. Don't worry, China has many ghost cities, enough for them to jump when the SHTF.

Tue, 06/09/2015 - 06:18 | 6177659 onedb1
onedb1's picture

RSI a tad overbought ;-))) hahah 

Tue, 06/09/2015 - 07:18 | 6177748 Wahooo
Wahooo's picture

You know the shit storm's coming.

Tue, 06/09/2015 - 08:09 | 6177880 orangegeek
orangegeek's picture

Buy one umbrella, get one floating dead pig for free.  ACT NOW!!!

Tue, 06/09/2015 - 09:52 | 6178308 starman
starman's picture

So does this mean it's gonna rain or what?  

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