Eratat Lifestyle

Hi newbiestock, thanks for asking. I'm doing fine
Studying to start a second business now, so damn damn busy. But I learned a lot of new things about accounting reports after filing tax a few days ago... Starting to see companies' financial statements in a different light now. In essence, adjusted profits should never be the main focus; cashflow is of utmost importance. It has been what I have always been doing, but I didn't fully understand why we should do that last year.



Hi Tactician, pardon me, but I remember you saying the same thing a year ago. But I guess you have accumulated heavily during the <10cents time to say that Congratulations!

Hi Momo,

Good to hear that you're studying to start a second business. Cashflow is indeed very important, especially for SMEs. It's often the most overlook component. However,the more important aspect is to execute a good strategy that takes into consideration both aspects - profit and cashflow. Often, you'll have to give up one to focus on the other. It's how you manage these in tandem (given the company situation) that is important.

That's what I try to understand when looking at Eratat. What makes it more difficult is that information for companies like Eratat tends to be limited (I think Eratat is quite good for its class overall). Intention is the other aspect that makes investing in such companies risky... but lets face it... fundamentally, if there is no variance or difference in opinions about the valuation of a company, there will not be as large an opportunity to profit from making a right call.

I wish you all the best in your business.

Cheers

Hi Tactician,

thanks. What I was referring to was profits reported in the accounts, and why it is not an important indication of a company's health. Being profitable is not tough, being not so profitable when profitable requires more homework when I'm an SME that does not have sufficient funds to employ experts to help out.

That's all I can say


As for Eratat, all I can say is good luck

cool, momoeagle. I am also planning a startup with a friend too. hopefully, it work out.

as for eratat, the company has a great CEO with good foresight and most imptly, it is growing and the share price is way too undervalued.

of course, i do not deny tat competition is stiff due to many apparel companies in China. but it is the same for other industries as well such as Auto where various brands of cars from US to Europe are there to flood the market.

momoeagle wrote: Hi newbiestock, thanks for asking. I'm doing fine
Studying to start a second business now, so damn damn busy. But I learned a lot of new things about accounting reports after filing tax a few days ago... Starting to see companies' financial statements in a different light now. In essence, adjusted profits should never be the main focus; cashflow is of utmost importance. It has been what I have always been doing, but I didn't fully understand why we should do that last year.



Hi Tactician, pardon me, but I remember you saying the same thing a year ago. But I guess you have accumulated heavily during the <10cents time to say that Congratulations!

If it starts the share buy back, any price below 20cts should be considered super cheap given that it's cash of 15cts/share and NTA of 40cts/share.

Gangho, several S-Chips have share buyback mandate but don’t use it despite their shares being well below NTA . Hence the mandate is a double edge sword, esp if they don’t use it to buy back if the share is below its cash value. I have sold my last tranche at 14.5 cts about a year ago, but have collected back some since they announced their share buy back recently. I hope to make some pocket money, though no guarantee as they didn’t buy any shares when they had a share buy back mandate few yrs ago. Let’s see what happens after the share buyback mandate is passed in coming EGM ? Good luck everyone.