The explosive rise in share prices among Macau counters over the past several weeks makes them prime candidates for a major correction, analysts warn, as most do not have the earnings fundamentals to justify their soaring prices. Late-coming investors in red-hot Macau-related stocks are most at risk of getting burned. 'It's insane,' said Yang Liu, managing director of Atlantis Investment Management. 'I'd exit the moment I realised some gains.' As during the height of the dotcom boom in early 2000, the mere hint of a Macau connection has been enough to send a stock rocketing to stratospheric heights. Far East Technology International, part of the Far East group of companies controlled by the family of Deacon Chiu Te-ken, is a case in point. Far East Technology shares zoomed 255 per cent this week, despite the fact the company has no business in Macau at all. Associate firm Far East Consortium International, however, is involved in a $1.7 billion property development, including a hotel, serviced apartments and retail complex, in the former Portuguese enclave. Shares in Far East Consortium, which holds 28 per cent in Far East Technology, have gained 98 per cent since it announced the Macau development in August. The stock rose 4.92 per cent to $3.20 yesterday. Meanwhile, shares in Melco Investment Development rose 16.33 per cent on Wednesday after chairman Stanley Ho Hung-sun mentioned a possible injection of gambling interests into the company. Melco shares had already increased 390 per cent since September. The shares fell 0.45 per cent to $10.95 yesterday. Hair and beauty salon operator Century Legend (Holdings), which also arranges tours for high rollers to Macau casinos, has risen 134 per cent over the past month. It fell 3.94 per cent yesterday to close at 19.5 cents. Shares of Emperor (China Concept) were suspended from trading yesterday. Market speculation holds that the company will launch a rights issue to finance the purchase of a building in Macau for transformation into a casino hotel. Trading of shares in Shun Tak Holdings was also suspended yesterday after the firm said it would soon announce a $1 billion mixed residential-commercial project on a prime site in Macau. Many market watchers liken the recent Macau fever to the internet boom and bust. 'Back in 2000, tech and internet companies had no cash flow and only losses to show. It is the same with Macau stocks now. The share price is far ahead of the actual state of development,' one investment banker said. Another hot spot in the market yesterday were shares related to the Lai Sun group, with Lai Sun Development, Lai Sun Garment, eSun Holdings and Lai Fung Holdings all up by 25 per cent to 33 per cent. Adrian Ngan, property analyst at BNP Paribas Peregrine, said the only reason he could think of for the advance was that eSun has a piece of land in Macau that was left over from a TV City project, and some punters may now be speculating that it could be turned into something gaming-related. 'At some stage, you don't need to have any assets. You just need to say that you are exploring opportunities in Macau,' he said. Profit taking by majority Macau-play shareholders is already in evidence. Shares of Far East Hotels and Entertainment eased 1.32 per cent to 75 cents yesterday after managing director Derek Chiu and chairman Deacon Chiu unloaded 15 million shares and two million shares, respectively, after the counter soared 90 per cent on Wednesday. David Chiu Tat-cheong, deputy chairman at Far East Consortium, however, rebutted suggestions that the rally of Macau-related stocks was reminiscent of the tech bubble. 'The internet bubble burst because most internet start-up companies did not have solid fundamentals to sustain their earnings,' he said. 'They were selling stories.' But Mr Chiu conceded that Far East's Macau property project would not contribute revenue until 2008.