It is a lesson to be learned by many who 'invest' in S-chip based upon the so-call FA criteria. If the company management willing to 'cheat' the public it is very hard to detect until it surrender ! The company has been in very GOOD FA term for some years and recently even a big finance company 'willing' to loan it 100+m S$ re-enforce its financial 'healthy' status. The latest qtr report shows no signs of any issue and there are TWO big analyst house still issue very GOOD report calling intrinsic value at 28cents. These analyst house are partly to be blame as they suppose to have better 'insight' in to the company 'health' status. So far the only red flat is the director selling all its share in Aug2013 which does raise concerned. do not issue dividend is not an issue and call for the loan is subjective as well.
From this issue going forward one should AVIOD ALL privately run S-chips no matter how good their FA presented in the financial report. There are countless case happen in SGX already. Enough is enough. SGX does not appear to be concerned over such numerous cases of default/cheating/suspension...
Worst of all there are someone in this forum add fire to it and could get some others to put money in the latest 'run' up... especially there is one call for 'smarter buy foolish sell' when the share has run up to 11.6 cents... Believe these people are related to the bb party which eager to get out and keep mention its FA is solid with cash of 25cents/share. These are the people need to be blame too.
Ultimately as retailer just bear in mind stay AWAY, FAR AWAY from all 'privately run' S-chips.
Hope those who get hurt could sail thru it and get re-organised its portfolio. I feel sad for them as I was caught in the Ferro case before.
Last edit: 10 years 2 months ago by elbert. Reason: correct spelling.
We should be cautious with S-Chips by not having a heavy weightage in these counters. I do not agree that we should shun S-Chips totally just when we bitten before. There are still good ones like Sunvic, Sino Grandness, Midas. If we have the same treatment for all S-Chips then the quality ones will not come to sgx to list or leave sgx and sgx won't be attractive place to list. Sgx must improve and be more strict with S-Chips.
Aside from this, Eratat hasnt get the final verdict yet though chance is slim. For shareholders of eratat, do not give up till the final verdict is out. Anyway, stock is suspended, just sit tight while the company verify if they have the money. Maybe it just a way to show the company got $ though which is unlikely.
I do hope all the analysts are hold liable for their calls. And a rating should be given to each analyst based on their calls.
Newbiestock is MIA and probably already up the lorry with Eratat. The biggest joke is not listening to the sincere advices of fellow forummers and being blind to see the red flags ... I hope Newbiestock learns his lesson... Although this school fee is very expensive!!!
Skeptic wrote: Newbiestock and Tactician, where are you now? Why don't you come out and tell us what you have to say about this?
I'm not happy to see this either as it is affecting sentiment in other stocks. But you can't say that we did not warn you.
The biggest joke of all is that Lin Jiancheng is un-contactable at a time like this...
Gd warning by the bros here.
For eratat, they really cover very well ie give dividend. Give money to sias award most transparent company. Etc...
for newbie investor sure taken in by them.
Ppl.need to kana burn once so that they will learn their lesson. Thats life.
ERATAT LIFESTALE: More light On-Bond-Cum-Warrant Issue left many question unanswer.
1) Eratat have RMB502 million yet even cannot secure RMB100 million loan?
2) How Eratat utilise it's RMB502 million for it's business operation?
3) Eratat able to generate cashflow positive yearly, last year by more than RMB200 million yet so desperate for cash? (More than double the amount it desperately want to loan)
4) Any companies able to generate such impressive cashflow yearly maybe trading at over PE 20x. Why such great performance yet trading only of PE 2.5x
5) Eratat NAV of 44 cts and half of it is cash, why trading at only 13 cts? (Either the market know what we don't know or the market are FOOL.)
6) Is it at this point of time Eratat business is facing strong head wind and the RMB100 million loan is to help the company from sinking?
7) Eratat having cashflow of RMB502 million not good enough to guarantees for loan from bank for RMB100 million?
It's a big joke why some people are defending the company day and night instead of the CFO of Eratat.
This is a big joke:
ERATAT receives SIAS Investors’ Choice Award for Corporate Governance on 9th November 2013.
9 November, 2013 - ERATAT LIFESTYLE LIMITED (“The Group”) is proud to announce that it has been awarded Runner-up of the “Most Transparent Company Award 2013, Mainboard Small Caps Category”, by the Securities Investors Association of Singapore (“SIAS”) at the SIAS 14th Investors’ Choice Awards Dinner Presentation Ceremony.
The award ceremony, graced by Mrs Josephine Teo, Senior Minister of State, Ministry of Finance and Ministry of Transport, was held at Resort World Sentosa (Singapore) on 8 November 2013.
SIAS confers the award annually, to companies that have demonstrated benchmark standards of corporate governance, with an emphasis on transparency and integrity in conducting their business. SIAS has appointed Singapore Management University, Sim Kee Boon Institute to conduct a research findings using Singapore Corporate Governance Index (“SCGI”) as stage 1 selection process. Companies were then shortlisted in their respective sub sector followed by a stage 2 nomination from financial journalists, analysts, fund managers and retail investors represented by SIAS. The selection committee comprised of senior financial journalists, brokers, fund managers and SIAS.
Commenting on the occasion, Mr Ken Ho, CFO, ERATAT Lifestyle Limited, said, “We are delighted to receive such a prestigious award. This is an endorsement for our efforts in good corporate governance practices thus far. We will continue to maintain and enhance the high standards of corporate governance we have set for ourselves”.[/b]
I also hv my own social life. Dun wan to keep on debating endless here n there who's right or wrong. It is very tiring, guys.
And fundamentalist, as of now, eratat forms more than 50% of my portfolio and the lots i hv accumulated is definitely not a small amount.. As for cambridge n neratel, my current position is quite small as i hv taken some partial profits be4.
And as i hv mention be4, i am kinda busy with my current work n projects so the no of stocks i am holding is nt as many be4.
Do note that i hv no obligation to answer or share my personal things online. Neither do i claim myself to be any master in stocks.
Win or lose - i really cant be bothered. I am buying a company which i believe is undervalued n has a business potential which i believe in. And my strategy is accumulate on dip until the value gets unlocked. As simple as tat.
