Eratat Lifestyle

newbiestock
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Senior Member

10 years 6 months ago - 10 years 6 months ago #16595 by newbiestock

Replied by newbiestock on topic Eratat Lifestyle

today looks good for the first 30 min morning start...

maybe bottomed out le.

vol expanding and there shld be at least some technical rebound.

if the rebound is real, now still not too late to enter...

Last edit: 10 years 6 months ago by newbiestock.

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Bestworld
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10 years 6 months ago #16597 by Bestworld

Replied by Bestworld on topic Eratat Lifestyle

Worth taking the risk at this price..............

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Rock
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10 years 6 months ago #16599 by Rock

Replied by Rock on topic Eratat Lifestyle

Damien,
Fundamentally on paper Eratat is one of the most under-value stock around. Company before the loan is debt free, super fast growth cashflow, cash per share now double NAV 4 times its share price. Yet today it is sold down to PE 1.5X. Such super performance should be trading at least PE 10X.

Why sales incentive award of RMB 51.7 million that is why market don't buy the idea???

On 22/8/2013 Eratat director disposed of all his share holding of 6.77%, another big question, why after profitable 2Q 2013 reports???

Do you believe market is unfair to Eratat or markets are FOOL??? The high interest rate loan raise more questions???

Just look at Qingmei at one time was hotly discuss in this forum and what happen to the stock now?

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momoeagle
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10 years 6 months ago #16600 by momoeagle

Replied by momoeagle on topic Eratat Lifestyle

Damien wrote: Other then the extremely high interest loan, which was deemed unnecessary

This one single factor not enough?
At an effective interest rate of 32% p.a.
If you take into account the 2012 financial statement and calculate the ROE, it is about 14.7% (assuming my calculations are right). The ROA is a mere 4.32%, mainly because its receivables already comprise of 50% of its total assets.

With an ROE of 14.7%, it certainly does not makes sense at all to borrow more cash at 32% effective interest p.a.
Sure, it can be argued that they may return the loan earlier, but that is an unknown factor no one knows when.

In addition, we have the following points that have been discussed long time ago:
1) High Receivables, although recently offset by nicely packaged Sales Incentives and Renovation Subsidies
2) Director suddenly offloaded everything at a price that is way below the cash per share. "For Personal Reasons" is mainly a nice way to package and conceal the reason for the sale.
3) Supposedly being a transparent company and very particular about who its distributors are, Eratat has never ever revealed who its distributors are.

These are the red flag risks investors have to consider before entering. One is already a lot, now we have four.

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momoeagle
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10 years 6 months ago #16601 by momoeagle

Replied by momoeagle on topic Eratat Lifestyle

Rock wrote: On 22/8/2013 Eratat director disposed of all his share holding of 6.77%, another big question, why after profitable 2Q 2013 reports???

If it is a third party who bought all his shares at a married deal, that third party would have become a substantial shareholder and Eratat will have to report it.

If it is bought by another director, then Eratat will also have to report it.

So either Eratat failed in its duties to report who bought it, or it has been sold to multiple entities pte ltd set up to buy it (which raises the question on why the need to hide), or it has been offloaded on the market, and not a married deal as reported.

If we take a look at the market, the typical daily volume is about 3~4 mil.

On 15th August, the volume was about 36mil.
And 32mil shares were offloaded on a married deal.

The maths work out reasonably that the stocks may have been sold at that date.
Yet if so, it should have been reported within 2 business days (19th August), but the date of change in interested mentioned in the pdf is 21st August.

Too many questions, not enough answers.

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Val
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10 years 6 months ago #16605 by Val

Replied by Val on topic Eratat Lifestyle

If anyone is interested enough, just go to the corporate secretary (Boardroom Pte Ltd) and pay a small fee ($5, I think) to view the entire shareholder list (which comes with their addresses & IC nos.).

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