Eratat Lifestyle

Rock
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Junior Member

10 years 10 months ago #14893 by Rock

Replied by Rock on topic Eratat Lifestyle

Below posted on 25th June 2013
25/06/2013

16:19:52 0.136 1000 A
16:19:23 0.133 200,000 A
16:19:23 0.133 50,000 A
16:19:23 0.133 100,000 A
15:32:42 0.132 20,000 A
15:30:13 0.132 10,000 A

beautiful buy up, esp the 1 lot at 13.6 c

It’s only 3 dollars job.
…………………………………………………………………..

A company having cash & bank balances of RMB 545 millions. Yet so desperate for cash, turn to “AH LONG SAN” for RMB 100 millions paying interest of 30%. I don’t know why! I don’t understand! I don’t wish to understand! I don’t wait to understand to find out! I don’t wish to enjoy the eventual outcome to find out!

There are so many good companies, so many good businesses around. DON’T FALL IN LOVE with just one. Please don’t take offend, I mean well. Just look at the above - I lot done @ 13.6cts on 25th June 2013, its only 3 dollars job yet so excited. Must be falling in love.

I believe in managing risk. If in doubt on the companies, keep clear. If smells of fish, keep clear. If smells of cockroach, keep clear. I choose not to take unnecessary risks. Even earning lower returns, it’s OK. I value & enjoy GOOD NIGHT SLEEP.

I like this quote:
"If buying a stock requires such in-depth understanding, interpretation, postulation, guesstimation of the company's intention of issuing the bonds, it is probably too much for me."

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the peak
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10 years 10 months ago #14894 by the peak

Replied by the peak on topic Eratat Lifestyle

I have visited a numbers of 2nd tier & 3rd tier cities in China over the past few years. During these visits, I do keep a lookout for Eratat brand. However everywhere I went, I could not find any Eratat shops. Instead, I saw lots and lots of Anta, 361, Li Ning, Xtep, and many more including international brands.

I remembered I only saw one person wearing Eratat shirt after spending close to 2 months visiting so many cities in China.

As Eratat's profit has been consistently good and pays dividends every year, I can't imagine what the profits and dividends will be like when Eratat starts expanding, from a small player to a big player.

I believed a lot of question marks will be removed when Eratat clarifies their gaming plan with SHK during the Q2 results briefing in Aug.

The following user(s) said Thank You: yeng, pine

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pine
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10 years 10 months ago #14898 by pine

Replied by pine on topic Eratat Lifestyle

I came across some info on the convertible bonds issued by SHK to Sino Grandness -- and it bears some similarity.

1. Did you know that if Grandness 'makes no effort' to list its subsidiary Garden Fresh, Garden Fresh has to redeem the bonds @ 73% higher than the principal? (LOL -- and we all are now talking about 67% for Eratat, ie the diff between 100 m subscription and full repayment of 167 m, including interest).

2. If the listing fails despite efforts being made, the redemption will be 52% higher than face value.

For Eratat, the best case scenario must be the stcok price rises above 25 c for the warrants to get converted, and then Eratat collects RMB100 m which can be used to redeem the bonds. In the best best scenario, the conversion is very early, and the bond redemption is made to extinguish the interest cost. (I must be dreaming )

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Skeptic
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10 years 10 months ago #14901 by Skeptic

Replied by Skeptic on topic Eratat Lifestyle

Abb u are comparing apples to oranges. One is a basic condition for bond subscription one is a penalty. One is base case one is worst case scenario.

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1.618
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10 years 10 months ago #14902 by 1.618

Replied by 1.618 on topic Eratat Lifestyle

infopub.sgx.com/Apps?A=COW_CorporateAnno...Last3Months&F=880852

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yeng
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10 years 10 months ago #14903 by yeng

Replied by yeng on topic Eratat Lifestyle

I learnt something useful from Boon of valuebuddies.com, who posted:

Eratat has been paying dividend every year since its listing in 2008. Cumulative amount of dividend paid to date = RMB 61.8 million according to my calculation.

To my knowledge, SAFE regulates the conversion of the RMB into foreign currencies. Therefore, SAFE approval is required for Eratat to remit after tax profit in RMB from its PRC WFOEs into SGD to Singapore for distribution as dividend to its shareholders. The company must generally provide tax payment certificates, an audited financial report, a board resolution approving the distribution of profits, the foreign exchange registration certificate, and a capital verification report in order to obtain clearance for an overseas profit payment. SAFE may also request additional documents

Since Eratat has been paying dividends every year, it must have gone through this process every year. It is impossible to get through this process with fake documents IMO. – especially on the tax payment certificates – therefore, credit must be given for this. If the amount of tax paid is “real”, the profits as reported are likely to be “real”.

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