S chips

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S-chips seems to have  made  a bad name for themselves these past few years. A number of them have been caught with being less truthful.

How can one justify the validity of the fundamentals of S-chips now? Maybe there are some signs that we can look out for. For example, look out for companies with excessive cash or debt. Be cautious of S-chips that shows large cash reserves, but refuses to pay dividends and in turn calls for right issues.

I doubt these signs can be fool proof though. The best way to prevent being caught is to avoid them altogether. To each his own.