This was always a ticking time bomb. Selling jewellery in the rapidly expanding market and having a p/e around 8 and having no debt never really made any sense to us…
We always argued that fundamentally there is nothing wrong with this company. The only thing we could think of is that they’re slightly cash-flow negative, but that’s the price they pay for expanding so rapidly. Here is our fundamental piece. Not much reason to change track.

Now, with earnings near, and the Chinese domestic demand rising rapidly, we think this thing can only go up. Technically, it has broken out.
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