Don't guess the top in an up trend..

Although I have been wrong for quite sometime on the overall market movement, at least my core holdings are up more than the market, namely 1068 and 999. 1068 HK is my favourite pork play and I have wrote about it earlier.

I took a look at other food plays in China, but most have been up already like Chaoda Modern. Two US listed companies caught my eye, they are FEED and SEED. FEED just bought a number of pig farms in Southern China by issuing new shares to market. They buy the pig farms at 3 times P/E but sell their own shares at over 60 times P/E (historical). I think there is something fishy here. However, if you look at their graph, you can't really blame them for selling!

SEED is totally another story, it main business is selling their bio-engineered seeds in China. Given the recent price hike in overall food price, SEED should be able to attract investors attention soon. However, this is such a small company that not many sell side coverage is avaliable. This can be explosive, not bad for a small bet, like buying mark 6.