Eratat Lifestyle

while eratat's report is significant.. global worries is hitting down on every bourses and this affects investors appetite as well..
u put this together with eratat being an s-chip which had bookkeeping issues not very long ago.. investors appetite is pretty much trimmed.
maybe this report will bring the attention back on eratat, who knows.

CMZ....another s-chip...just offered to delist!! Eratat may be the next!!

belgeran, i agree that the stoopid US & Europe, which can't live within their means, are having a dampening effect on investors everywhere. Sigh.

btw, i think you have confused Eratat with other counters when u wrote that 's-chip had bookkeeping issues ..." Eratat never had accounting issues. U confused with Hongwei, Hongxing, etc?
[hr]
[belgeran 03-08-2011]:

while eratat's report is significant.. global worries is hitting down on every bourses and this affects investors appetite as well..
u put this together with eratat being an s-chip which had bookkeeping issues not very long ago.. investors appetite is pretty much trimmed.
maybe this report will bring the attention back on eratat, who knows.

Hi Relaxing,
 
Honestly I'm just as baffled as you. As we all know, many s-chips are trading at recession level prices, m the FT China index (for s-chips) is near its 52-week low, and if there was an index for smaller-mid cap s-chips I think it would be at a near 2-year low. And out of all these beaten down companies, I think that Eratat's is one of the most extreme cases of undervaluation. 
Even after companies like Hu An Cable listed TDRs in Taiwan and has recently even made its shares in the 2 markets fungible, allowing Singaporean shareholders to sell a portion of their shares in the Taiwan market, the Taiwanese shares remain about 50% higher than the Singaporean shares - it's that stubborn! One day in future it may be common for a stock to be listed on multiple exchanges from different countries, with the shares from each exchange fully fungible/convertible to be bought and sold on any of the exchanges, real-time, then you will no longer see quality companies bogged down by over-bearish over-negative sentiment in the S'pore market. 
I'm not sure how long more the managements of many of these companies will allow this continued undervaluation to continue without delisting or relisting elsewhere. Trading at such low valuations leave them vulnerable to hostile takeovers for a very cheap price. If for instance by paying 80 million you could acquire a company earning 40 million in net profits per year, which has a net asset value of 160 million and showing great growth potential, wouldn't you think it's a great deal? If valuations don't reach a fairer level in due time, then something drastic will happen sooner or later.
 

garl,
i know eratat hasn't had accounting issues, like alot of other s-chips (china taisan, fuxing, qingmei).... but when you have multiple cases of accounting issues that happened near simultaneously, people tend to be afraid.... afraid which s-chip is gonna suddenly halt and announce accounting issue.
As u can see from the accounting issues saga, there were no signs or news until major sell off in market then sudden halt... lots of players were trapped in those counters... this breeds bad reputation for s-chips in general.

hey, i'm one who is still on s-chips even after the saga, they are all trading at discounts.
Oh.. out of topic, but what do you guys think of chinafibretech?
[hr]
[garl 04-08-2011]:

belgeran, i agree that the stoopid US & Europe, which can't live within their means, are having a dampening effect on investors everywhere. Sigh.

btw, i think you have confused Eratat with other counters when u wrote that 's-chip had bookkeeping issues ..." Eratat never had accounting issues. U confused with Hongwei, Hongxing, etc?
[hr]
[belgeran 03-08-2011]:

while eratat's report is significant.. global worries is hitting down on every bourses and this affects investors appetite as well..
u put this together with eratat being an s-chip which had bookkeeping issues not very long ago.. investors appetite is pretty much trimmed.
maybe this report will bring the attention back on eratat, who knows.

Eratat holding up very well today despite 500 pt dive by Dow.
Rock solid at 17.1 cents.