Hi Newbiestock – Why would anyone sell at 11 cts when Eratat earns 8 cts/share + pay dividends yearly? Best is to use spare cash to hold S-Chips so as not to get caught by forced selling as most are difficult to sell even in modest quantities without crushing the price. If it’s any consolation, share price of forum favs. like Hu Ann, Qingmei, Fuxing, Oceanus etc have gone down abt same or more from yr’s peak.
ya. u are rite, relaxing. shld just buy stocks with spare cash. For me, i would love to buy more if i can afford to. But for now, i gt keep some spare cash for other use (not for stocks). let's pray and hopefully, mkt can recognise its value and restore to a fairer valuation price soon.
Think about it, if Eratat's products were truly in high demand and selling well, many established retail distributors iwould be queuing up to own the right to sell Eratat products and Eratat would therefore hold all the bargaining chips and pick and choose the distributors who are willing to go by terms that are favourable to Eratat.
There would be no need for such a long collection period of more than 120 days and to even offer subsidies so that they will be willing to renovate their shops.
This is just like how Eratat's apparel supplier is very stringent with Eratat and even imposing the requirement that Eratat pays 50% deposit before the products are even ready! Not even collection upon delivery! Let alone offering delayed payment in the form of receivables!
If Eratat products are selling very well, distributors will be lining up to sell them and willing to offer Eratat much more favourable payment terms.
You got to read between the lines. The company will never tell you upfront that some distributors stopped working with them because their Eratat products were not selling well.
if not selling well, why would the distributors willing to put so much money to setup so many shops? The premium is just newly launched, so i think Eratat should be able to bring in some new distributors in 2012. i could be wrong though.
anyone here remember a company called Benefun International? Like Eratat, it was trying to brand its fashion clothing in China Market few yrs back and it has disappeared during last crisis...
Hi Newsbiestock – Read the part “Professionlas at Play “ in the recent Nextinsight article “Sunpower Shareholders Should Be Advocates, Activists”. I believe in present fearful times, the professionals are already pushing down good small cap stocks to accumulate. The worse may yet to come in this media/internet run market , esp for those good S-Chips which have not crashed yet, so brace yourself in the many months ahead. As I have said, use spare cash to hold your fav. S-Chips. As for me, I am locking up my stocks and not let the professionals scare me into selling but will be patiently wait for the Eurozone to turn around before I re-enter the market. So, don’t worry and be happy as the SGX won’t go away.
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