Know what you are buying

Rowsley, a company controlled by businessman Peter Lim announced plans for a S$581 million deal that will transform Rowsley into a major real estate player.

Source: http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_93D67C6962F8B30548257ADB001CF5C4/$file/RowsleyLtd.MediaRelease_21.12.2012.pdf?openelement

Based on the 2012-2013 half year results, Rowsley write off a net loss of about $26M and had a NAV (net asset value) of $0.0427.

It's closing price today is still at $0.295. The price to NAV ratio is about 7:1. For every $700 you invest in this stock, you are only buying $100 of its assets.

People playing contra on the stock market are heavily buying up this stock. But if you are playing it, don't expect it to maintain its upward trend since numbers have shown that it is expensive and overvalued.