Eratat Lifestyle Limited

MacGyver wrote:

Dear Forummers,

The latest SGX announcement confirmed my source of news. The cash in the bank is not real and cannot be recovered.

I wish the shareholders of Eratat good luck.

Awarded SIAS 2nd position in most transparent company... hmm.. SIAS question blumont when share price were RISING and cause the whole market to crash last year and never really recovered since.. AND awarded 2nd position to Eratat for transparency.. hai..sad

SIAS's award need to be explained to the public. Also the auditor for the latest report need to answer to the public. And SGX has any action or investigation for the issue ? Also where are the independent director's comment and duty for the issue ? Don't simply blame those who has suffered big loses but the authority , the experts, the regulatory body etc ... all are not going to get away. Simply put: AVIOD all S-CHIPs from now on until something has been done drastically to assure the retailers.

In my view, questions must be asked of CFO Ken Ho. CFO for so many years and it takes him till now to realize something is up!? Is his job to sleep in Singapore all these years while the operations are being run in China?? As the company's CFO, you're almost like the number 2 in the company, he owed it to shareholders to be a big part of the day-to-day operations of the company. I have condemned this company for a while now given the red flags but even I am feeling sorry for the small shareholders.

Q: What is your worst investment to date?

The $25,000 I put into a fashion label, Eratat Lifestyle, last December.

It was an S-chip, or China firm listed here, and I bought its shares at 10.2 cents apiece.

Trading was suspended in January because the company allegedly defaulted on bond payments.

Many had told me that there would be a second rise of the S-chips, and that they are the forgotten and neglected child of the local stock market.

So I trusted my friend's judgment and gave it a try. My friend hasn't said anything since the stock was suspended. But I made the call to buy into it, so there is no need to point the finger at others. I just hope I can get some money back!

Q: And your best?

My investment in Juken - a company selling automotive parts - that I bought shortly after the global financial crisis.

I bought the shares at 4.2 cents each, when it was undervalued because it was perceived as a boring business. Selling vehicle parts was not exciting and it was deemed to be in a sunset industry.

In about six months, it soared four times to 16 cents, and I sold it and reaped a profit of $150,000.

I usually determine a selling price from the onset, and tell myself to take a profit as long as it hits this target price. That detaches any emotion from the decision, and I'd rather pump the profit into another undervalued stock.


www.evernote.com/shard/s2/sh/f8226c81-2b...b3214a14877bb82f2b70

The Straits Times
www.straitstimes.com
Published on Mar 23, 2014

I am vested in Eratat. Being new to the game, am I to assume that my investments have totally evaporated, no best case scenario whatsoever? Even if I lose all my investment, won't somebody bring the CEO to the courts to answer for what he's done? Appreciate anyone who has previous experience to share what is probably going to happen, thanks.

Hi,

Most likely scearnio is company still suspended for years until delisting is made mandatory. If the cash is zero, then there is no exit offer.

Best case scenario is white knight coming into the picture to save the company. Like CAO that collapse with 550millon trading loss, it's powerful parent rope in BP and temasek to restructure the company. I was vested in CAO, and in the case of GAOxin, even successful restructuring means heavy haircut.

Singapore do not have an extradition treaty with china, and if the company has little assets in Singapore, e.g. Properties, goods etc, there is nothing we could do as there is nothing to seize. Singapore cannot seize its china assets, so court case even if successful cannot be implemented effectively .


Correct me if am wrong in any way.

Best to write it off an start anew