Sino Construction rebound rests on transformation success

THE massive collapse in Sino Construction's shares once again highlights the dangers of punting on fast-rising "concept" plays.

Last week, Sino Construction - a civil engineering and construction company that is in the process of transforming into an energy conglomerate - took a huge hit, with its shares losing some 76 per cent of their value within just two days. When the dust finally settled at the end of week, it closed trading at around 6.3 Singapore cents on Friday, a pale shadow of its price of 28 cents a week earlier. On Monday, Sino Construction plunged another 14.29 per cent, closing at 5.4 cents.

What precipitated this fall is still speculation and some were quick to pin the "Blumont" label on the company.