I have check up Eratat last 3 years cash & bank balances:
Eratat 1st Q 2011 = RMB 214m
Eratat 1st Q 2012 = RMB 323m - increased over RMB 100m in a year.
Eratat 1st Q 2013 = RMB 545m - increased over RMB 200m in a year
Eratat over 2 years cash & bank balances increased from RMB 214m to RMB 545m - increased by over 150% or increased over RMB300m.
From Eratat's cash & bank balances for the 3 years I am wandering why on earth Erata able to generate such wanderful cash flow year after year turn to loan, paying 30% interest. Are Eratat is so desperate for cash going such length or such distance just for RMB 100m. My understanding; only desperate people will turn to credit card for cash paying 24% or worse to loan shark.
I fully agree with Del, as he had give good advice below:
If the accounts are real Eratat cannot be desperate for money. From the IPO prospectus, Lin Jiancheng has been in the business since 1983, that's 30 years this year. If Lin Jiancheng is an idiot he would have gone out of business long ago. So is Lin Jiancheng an idiot or a fraud? Or something else?
This excerpt from another critic in another forum. it's fancy thinking that sees the world in black and white. Analyse his/her writing -- big/small, easy money/desperate, fraud/idiot, real/not real.
It jumps to a big conclusion and is unwilling to entertain a range of possibilities. Oh well, that's what happens when you think you are clever and have some experience and know your math. i think i am smart too, but I have seen so many instances when conclusions from paper analysis didn't eventually match with real-life outcomes. Why? Because there is a lot we don't know and even things we didnt know we didnt know.
From Newbiesstocks lastest post I thought I'm also in the dream! Everything seem so perfect. That can only happen in the dreams or in the classroom where every is perfect.
1000 x 1000 = ONE MILLION
Rock wrote: From Newbiesstocks lastest post I thought I'm also in the dream! Everything seem so perfect. That can only happen in the dreams or in the classroom where every is perfect.
1000 x 1000 = ONE MILLION
Oh, I'm still dreaming
haha...ya. i am in a dream...
if u are Eratat management, what would u do?
if u are SHK, what would u do?
Better not average down if financially stretched as can’t tell how low it can go or how long the price will stay depressed. On the flip side, the price may rebound quickly if there is positive news such as share buyback etc. As for me, this is my only penny stock and is abt 3 % of my portfolio , so okay to hold this bet for a while. IMHO, the worst of SGX correction may be over for now, but don’t think there will be a big broad rebound as most stocks have already run up.
From the link below, interest rate from “ shadow banking “ is abt 23%. A friend with factories in China said biz can get these loans at high interest rates but need personal guarantees. I doubt CEO or Directors in a local listed coy will give personal guarantees for coy loans ? Don’t think CEO Lin and his Deputy Mr Ye will do that either ? Even CEO Lin’s pledging his 25% shares for the bonds is strange to me as don’t think I’d do it myself. Am vested. Dyodd. Good luck.
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