Eratat Lifestyle

Who is that joker who's selling 2 lots every 2 mins?

Remember to have a stop loss to protect yourself. Do not let a small loss turn into a big loss.

Thanks Chinsoonyuen... Will monitor it

The recent market correction was spark by remarks made by Bernanke about QE3.

The signal received is the end of cheap money which had resulted in many great lost for many people.

I was wandering why Eratat being cash-rich plan to take up bond paying 12.5% which is madness.

Since the reasons are not clear, personally I will keep clear of this stock.



PS:This is only my personal view, take care.

haha, maybe?

Up till now it is still not clear what the effective interest rates on the bonds are.

To my knowledge, principal amounts by definition refer to the amounts to be paid back to SHK exclusive of interest payments. Interest payments are paid quarterly, but the sum of 134 million is the sum to be paid back to SHK at the end of 2 years, which raises the effective interest rate to about 30%.

Of course some argue that the principal amount interest payments and the effective interest rate is actually 15.75%, which is by the way, still an uncomfortably high amount. In any case, I have never heard of it being defined this way before.

Nevertheless I'm not an Eratat shareholder so the onus is really on you guys to quickly find out from the company, exactly what the deal is on this.

If you've put a lot of money in Eratat, finding this out is of critical importance in my view because if the company is desperate enough to borrow at effective 30% interest, I don't think I need to tell you that it has huge implications on your investment in it.