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I sold Wuxi Pharma Tech (WX) this morning, at $28.81. Not surprisingly the stock continued up after I sold it. I bought it a month ago at $21.80 so I’m happy. The stock is a bit expensive at current price ($30), considering its PE (about 100), profit margin, and its 2007 est. revenue. Another thing to consider is competition. It’s definitely more difficult than open economy hotels (Home Inns, HMIN), but I think it’s still doable (exp. and connections with big pharmas in the west).
Separately, Beijing Bank did IPO today in Shanghai, under tick symbol 601169. It started at 23.00, went as high as 25, and closed at 22.68. At current price, its year 2007 PE is more than 50. Crazy!