Eratat Lifestyle

Like all vested here, I m also not selling any lot....

The bond issue basically eliminated 2 major risks...possibility of equity raising at low price and the usual S chip risk (no cash)!!!

Newbiestock, correction is great so that we can take the time to differentiate the gem among the hay stack, and buy into them slowly. I bought some starpharm few days back when I queued at 4.2c. Do you have chance to look into this pharma?

gangho, maybe u wan to start a separate topic for starpharm.

I took a quick look at their company website as well as their 1Q 2013 result.

it seems like in 2011 to 2012, the company is facing losses. The encouraging part is the 1Q2013 results looks like it has returned from losses to profits. so, it could be a good turnaround company and the rewards could be high.

But one concern I have is that its cash and bank balances shows RMB18 mil but it has a bank loan of RMB 20 mil payable within 1 year. Good thing is operating cashflow for 2013 Q1 is +v but i think the debt and cash seems to fall into a danger zone. If it can continue to make profits for the next consecutive quarters, it should be all right.

To play safe, u may wan to observe its Q2 result. Best is wait for two consecutive quarterly profits for a confirmation be4 adding any further entry.

I am a mechanical engineer by training so pharm and chemical industry is not my area of familiarity. But a few qns i think u should ask them are:

1) what are the main reasons for their losses in 2011 to 2012? if they are manufacturing generic drugs and have a stable customer base from hospitals and clinics, why are there losses? Have to ask them more about the industy trends as well as their future earning outlook. Compare their earning peak year vs now and see if they can repeat consistent earnings for next few quarters.

2) what is their R&D expenditure? pharm do make a lot of $, esp if they have granted patents on any special cures. But then clinical trials and doctor endorsement also costs a lot of money. Of all drugs, oncology (chemotherapy drugs for cancer treatment) has the highest margin. also who are their competitors and their competitive advantage.

hope this helps... starpharm could be an interesting company. thanks for sharing. But best is attend any briefing, if have, and prompt the directors for questions...

A mth ago I said I’d join when the party starts. Have now bought back at 13.4 cts though IMHO, the current SGX correction will likely go on for another week or two. I think the downside risk is minimal for next 6 mths , but frankly can’t predict how this will end , so should only play with spare cash.

No point analysing details re how money will be used. This is a high stakes game as CEO Lin is pledging all his shares for the bonds issued and the China hand SHK is risking a large sum of money. Presume SHK have done due diligence , hence I am going along with them. This method of investing is not recommended. Dyodd as selling is as important as buying.

Just to illustrate how difficult to predict S-Chips? Early last yr, I posted that I wanted to buy Sino Grandness at 40 cts, but hesitated because of the bad reputation of S-Chips then. But when they ann. the convertible bonds, I took it off my watchlist as I thought they’d never meet the bond conditions. But the odds are better today though I’m not sure how to value it as the game is not over yet. Because I was too careful, I missed out on this multi bagger though no regrets as that was the right decision then.

relaxing, welcome onboard to this party !!!

let's all huat

relaxing wrote: A mth ago I said I’d join when the party starts. Have now bought back at 13.4 cts though IMHO, the current SGX correction will likely go on for another week or two. I think the downside risk is minimal for next 6 mths , but frankly can’t predict how this will end , so should only play with spare cash.

No point analysing details re how money will be used. This is a high stakes game as CEO Lin is pledging all his shares for the bonds issued and the China hand SHK is risking a large sum of money. Presume SHK have done due diligence , hence I am going along with them. This method of investing is not recommended. Dyodd as selling is as important as buying.

Just to illustrate how difficult to predict S-Chips? Early last yr, I posted that I wanted to buy Sino Grandness at 40 cts, but hesitated because of the bad reputation of S-Chips then. But when they ann. the convertible bonds, I took it off my watchlist as I thought they’d never meet the bond conditions. But the odds are better today though I’m not sure how to value it as the game is not over yet. Because I was too careful, I missed out on this multi bagger though no regrets as that was the right decision then.

Welcome Relaxing....