Yesterday, one of the markets favourite stocks of the last 18 months, Blackmore's (BKL) literally fell off a cliff, collapsing almost 20% in the one day. In this reporting season, we have witnessed a few examples of "growth stocks" that are trading at very expensive valuations, being hammered when their profit results reports do not live up to market expectations - when a stock is priced for perfection the risks are not surprisingly heightened on the downside. In the case of BKL, the marginal growth over the recent four quarters clearly did not warrant a stock to trade on a P/E of 30x i.e. Net Profit After Tax (NPAT) in Q1 $22.6m to Q4 of $24.5m. By way of comparison, CBA trades on a P/E of 13.7x and Seek 15.8x. Below, we highlight some of the risks in Chinese-consumer facing stocks.