Interest in Yamada Green Resources (MC7.SG) not letting up, +68.2% at $0.37 vs $0.22 IPO price, still most actively-traded stock in market, says Dow Jones.

“While sentiments tend to drive new IPO prices north, we caution investors not to adopt the herd mentality. Instead, traders should re-look fundamentals before committing to long positions,” says CIMB.

Broker notes China-based shiitake mushroom supplier trading at historical 8.39x P/E after run-up, premium to peers China Minzhong Food (K2N.SG), Sino Grandness Food (JS5.SG), which trade at 6.41x, 5.80x respectively.

“We see a lack of compelling justifications for this premium, and we think that the share price could have run ahead of its fundamentals,” says CIMB.

Orderbook quotes suggest $0.41 morning high may hold for rest of session. Yamada’s IPO 4.3x oversubscribed.