S chips, not all are bad, in fact some are great.

[Big Toe]

Looking at some of the activities going on for S-chips, it would very well appear that they are the worst and the best, depending on which company you are looking at.

There seems to be an endless stream of bad news due to forged accounts and missing cash, but what is also noteworthy is the acquisitions taking place of late. The candy maker Hsu Fu Chi. The investors would be very much in the money right now. What about C&O pharmaceutical? Even the zipper maker CMZ(who returned SGD0.03 to shareholders last year and now going private)?

There is great value to be found in S chips, just that we need to be very very very careful.

[corydorus]

I remember there are people who swear with their "life" on YZJ and Cosco long period back and maybe in this forum if i can remember, that not all are bad. Look at their multi Year Charts now.To avoid all does not mean the rare few who perform do not exist. Is alot about probability to fail or right in certain segment of classification to improve our chances.

Cory

[Musicwhiz]

I won't really agree with the title as stated by the thread-starter. Some of these companies are good, no doubt, but "great" is probably an exaggeration.

Reason? A few recently announced privatizations would indicate there is some interest in such S-Chips due to perhaps attractive businesses and low valuations, but this (to me) implies a valuation gap and thus makes the business attractive to acquire, but may not necessarily indicate an excellent business. Of course, please assess each company on a case by case basis - my statement is merely a blanket one.

Of course, as d.o.g. puts it, YMMV.

[lonewolf]

I agree that not all S-Chips are rotten and bad; just like not all Spore registered companies are good.

There may be some very good s-chips companies but it's not unfair to paint a broad stroke and dismissed all S-chip companies as investment propositions. Why? You are more likely to end up with eggs on yr face than scrambled egg on yr plate. I rather missed the scrambled eggs once in a blue moon than to get eggs on my face most of the times.

Having gotten my fair share of eggs on the face, I decided that its simpler just to give all S-chips companies a miss and concentrate on the Spore registered companies, blue chips and REITs.