yeh wrote: Haha. Gangho, your post is truly original.
If Lin is willing to give RMB100m to Eratat's distributors to sustain sales rev, I see no reason why Eratat can't commit RMB67m to SHK to work on share price. Good luck!
Wow is this the Eratat shareholder Morale Support Group?
Careful, when brothers here want to sell they will sell first then tell you.
Give 67 million to SHK to raise share price?? Firstly this sum is about half of last year's net profits - not peanuts at all. This money belongs to shareholders.
Secondly, SHK is under no obligation whatsoever to do anything for Eratat. It could if it chooses to, but regardless it is entitled to the 67 million or 30% interest rate. Is that how you engage someone to do a service for you? What a great return!
Skeptic, ur name really fits ur personality lol...
Skeptic wrote: Wow is this the Eratat shareholder Morale Support Group?
Careful, when brothers here want to sell they will sell first then tell you.
Give 67 million to SHK to raise share price?? Firstly this sum is about half of last year's net profits - not peanuts at all. This money belongs to shareholders.
Secondly, SHK is under no obligation whatsoever to do anything for Eratat. It could if it chooses to, but regardless it is entitled to the 67 million or 30% interest rate. Is that how you engage someone to do a service for you? What a great return!
greenrookie wrote: a piece of good news for holders of Eratat, from Boon at valuebuddies...
I am currently based in Shanghai and would like to share the following.
.....................
From what I have observed in Shanghai so far over the past few months, it seems to me that there have been “real activities” taking shape – they have been doing what they said they would do.
- I have seen Eratat Premium outlets popping up in Shanghai – Personally I have walked past two shops but did not go in. I do not know how many shops they have now in Shanghai.
- I have seen its recruitment advertisement for shop assistant/sales staffs etc. over the media for its various new outlets in Shanghai
- I have seen “retailer recruitment” advertisements over the media put up by its distributors
- They have move the trade show to Shanghai from Hangzhou.
In my opinion
- It seems like they do have strategy and plans in place for expansion to grow its business – and these are being carried out. How sucessful it would turn out - only time will tell.
- Eratat is not considered big compared to some of its local peers. If it intends to grow as big as some of them – it would need a lot more capital – its current cash reserve (assuming it is real) would not be enough – but these are future needs - if it could grow that big.
- However, for its immediate needs, it still makes no sense to me to commit to the bond/warrant issuance at such ridiculously lousy terms, considering that it still has so much cash.
- Renovation subsidy is not a concern to me – it is normal in China with this kind of business model.
- If its books are “real” and the cash is “real”, then it is a “real” undervalued stock.
(not vested)
If I can do such leg work on my own, maybe I can be more sure, but too bad, I cannot ... so i pass...
Maybe interested personel can ask him about sales traffic and pricing etc...
-- greenrookie, Perhaps you want to read NI's report on Shanghai visit in 2011. Yeah, things would have changed but I think there are some nuggets of interesting info in there about pricing, and there is a video of the shops.
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