(B)(N) The Wuxi Chain

The Wuxi Bridge

Drama. Regional economics are strong in China and that might be a necessity in an aspiring global economy with an unprecedented 1.4 billion people who are all trying to engage in the market economy.

We stumbled on the province of Wuxi, China, which is not far from Shanghai which itself hosts more than 24 million people in its urban neighborhoods, because Made in China pharmaceuticals are going global (Wuxi AppTec for one) and the world has suddenly – within the last twenty years – become much, much larger than New York, London, Paris, and Frankfurt in the battle for your money in Hong Kong and Shenzhen (South China Morning Post, April 10, 2018, Chinese Investors Back Drug Stocks To Weather Trade War With Trump).

Moreover, the “market economy” reveals itself by what the people do in practice and although there are many private companies which richly contribute to the local economy in China as elsewhere, it’s usually true that prosperity in a community begets even more prosperity which will attract the public and listed companies to where the talent is and the markets are.

IPO Fever In Wuxi

Private companies come to the market to enrich their owners by capitalizing future earnings and, to some extent, by putting some easy money into the cash till when more debt is not a possibility.

Accordingly, all IPOs (Initial Purchase Offers) are overpriced and we won’t know what they’re really worth until they begin to trade in the normal market day-to-day that is farther removed from the buoyant promotions of their investment bankers who are paid to provide that service for a fee.

To understand that reality, we need only look at where our profits are coming from in the (B)-Class Portfolio BEFORE the IPO Fever that began in 2015 and then AFTER; for more information, please click on the link below and again to make it larger as required.

Exhibit 1: (B)(N) IPO Fever In Wuxi – (B)-Class Portfolio

For more information on real “risk management” in modern times and additional references to the theory and how to read the charts and tables, please see our Post, The RiskWerk Company Glossary and “(P&I) Dividend Risk and Dividend Yield“, and our recent Posts “(P&I) The Profit Box” and “(P&I) The Process – In The Beginning“; and we’ve also profiled hundreds of companies in these Posts and the Search Box (upper right) might help you to find what you’re looking for, such as “(B)(N) TLM Talisman Energy Incorporated” or “(B)(N) ATHN AthenaHealth Incorporated” or “(B)(N) PETM PetSmart Incorporated“, to name just a few.

And for more applications of these concepts please see our Posts which rely on the Theory of the Firm developed by the author (Goetze 2006) which calibrates The Process to the units of the balance sheet and demonstrates the price of risk as the solution to a Nash Equilibrium between “risk-seeking” and “risk-averse” investors within the demonstrated societal norms of risk aversion and bargaining practice. And for more on The Process, please see our Posts The Food Chain and The Process End-Of-Process.

And for more on what risk averse investing has done for us this year, please see our recent Posts on “(P&I) The Easy (EC) Theory of the Capital Markets” or “(B)(N) The Easy (EC) Theory of the S&P 500“, and the past, The S&P TSX “Hangdog” Market or The Wall Street Put or specialty markets such as The Dow Transports & Utilities or (B)(N) The Woods Are Burning, or for the real class action, La Dolce Vita – Let’s Do Prada! and It’s For You, Dear on the smartphone business.

And for more stocks at high prices, The World’s Most Talked About Stocks or Earnings Don’t Matter – NASDAQ 100. And for more on what’s Working in America, Big Oil, Shopping in America or Banking in America, to name just a few.

Postscript

We are The RiskWerk Company and care not a jot for mutual funds, hedge funds, “alternative investments”, the “risk/reward equation” and every other unprovable artifact of investment lore. We have just one product

The Perpetual Bond™
Alpha-smart with 100% Capital Safety and 100% Liquidity
Guaranteed
With No Fees and No Loads on Capital

For more information on RiskWerk, please follow the Tags or Categories attached to this Letter or simply enter Search for additional references to any term that we have used. Related data may be obtained from us for free in a machine readable format by request to RiskWerk@gmail.com.

Disclaimer

Investing in the bond and stock markets has become a highly regulated and litigious industry but despite that, there remains only one effective rule and that is caveat emptor or “buyer beware”. Nothing that we say should be construed by any person as advice or a recommendation to buy, sell, hold or avoid the common stock or bonds of any public company at any time for any purpose. That is the law and we fully support and respect that law and regulation in every jurisdiction without exception and without qualification to the best of our knowledge and ability. We can only tell you what we do and why we do it or have done it and we know nothing at all about the future or the future of stock prices of any company nor why they are what they are now. The author retains all copyrights to his works in this blog and on this website. The Perpetual Bond®™ is a registered trademark and patented technology of The RiskWerk Company and RiskWerk Limited (“Company”). The Canada Pension Bond®™, The Medina Bond®™, The Barometer®™, the Free Market Yield®™ and Extreme Economics®™ are registered trademarks or trademarks of the Company as are the words and phrases “Alpha-smart”, “100% Capital Safety”, “100% Liquidity”, ”price of risk”, “risk price”, and the symbols “(B)”, “(N)” and N*.