A lot of shares were priced for a very gloomy outlook, and some have now bounced back from their dramatically oversold positions to a more reasonable valuation, on a 12- or 18-month view.
Conversely, some may cheer the RMB's depreciation as hopefully leading to more reasonable valuation whose stratospheric levels in recent months, as one leader at a major international VC fund told us last month, "have made it very challenging to make money in China".
Co-founders said they purposely set a more reasonable valuation than the recent $7-million norm for start-ups at a similar age.
They are a private company investing their capital at more than reasonable valuations with willing entrepreneurs.
The result of that dichotomy has been a share price that is getting more reasonable on a valuation basis.
But between those extremes is a handful of companies that seemed overpriced early in the game but have since come down to more reasonable levels of valuation.
Using a variant of the Fed Model, which compares stock valuations to bond yields, the utility sector's valuation looks more reasonable relative to fixed-income investments, though still not cheap.
All have Quadrix Overall scores of 80 or more, good growth potential and reasonable valuations.
"There is a feeling that because these stocks are down so much, valuations are more reasonable than people have seen in years and that is a tremendous temptation".
