newbiestock wrote: could be... many possibilities.
just hv to wait n see..
but for this yr, max they can only buy up to 47 mil shares.
see how. haha.
Yes, there are many possibilities and one of them which is highly likely is delist from SGX and relist in SSE or HKE.
Eratat is now doing a sustainable RMB 1 Billion rev with forward PE2.2 and consisent div yield of 3.3% over last 5 yrs. It can easily be relisted in HKE at PE 10.
I would think Sun Hung Kai can easily do this. Delist at 30cts (PE4.4) and SHK will make a huge gain from Arbitrage.
While we wait for this, let's enjoy the 0.5cts div pay-out soon and many qtrs ahead of strong profit/cash growth.
It is never a better time to buy and sit on Eratat!
The div should be sometime in July... hope it can come earlier.
but was told at AGM tat their autumn-winter trade show is in May and in June they hv to make trade deposits. Thus, was told that it's better to have the dividend payment after they settled their supplier trade deposits. Makes sense too.
even if distributors stay the same this yr, revenue n profit unchanged. as long as they do some share buyback, it will push the EPS up. And, their cash balances will still continue to grow as time goes by.
newbiestock wrote: The push from 14.7c back to 14.9 c this morning sort of relieves me.
first, it shows the party's not over yet.
secondly, there's a lot of collection at 14.9 c and it seems like the collection haven't over yet. Why at 14.9c, i dunno.
third, the barrier at 15c seems to be done quite intentionally.
let's watch n see over next few days...
+++
Looks to me as it. Roadblock at 15cts seems intentionally put up to collect more at 14.9cts... Very high chance it's just waiting to cheong after collecting enough.
When someone sold down 800 lots on 13 May in one trade yet price still hold very firm, we can deduce it is accumulation.It was probably a test of market confidence on Eratat by the big boys...
The same thing happened during Feb and price just slided down within next 5 days....
1) The PE is 7.3X while Eratat is 2X.
The valuation of Eratat is clearly too cheap. Will consider loading up on the shares on Monday.
2) The dividend yield of Evergreen is 7.3% while Eratat's is 3.4%.
The way to interpret the 2 points above is: Evergreen pays a lot more in dividends!
Put another way, if Eratat were to be re-rated to 7X PE, the dividend yield would be minimal, kacang puteh!
Eratat should take note that this is a key reason the stock is trading at 15 cents instead of 30 cents. By failing to provide a higher dividend return, the stock is getting punished to some extent.
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