Comparing the financials of two diff biz is illogical. Qingmei is a pure factory play which is not scalable whereas Eratat is franchising its clothing brand via distribution network. It’d be better to compare Eratat with its SGX peer China Sports which has a higher PE ( or even HK listed China Lilang, Li Ning etc )
Qingmei has excellent financials to date, but be wary when the CEO or main shareholder sell down their stakes aggressively, esp S-Chips . I am not vested in Qingmei though I have made some short term trades more than a yr ago. I believe Hunter Hall will continue to sell off its remaining 5%.
I am still holding some Eratat shares I bought early 2009 and I reckon they have executed their plans very well until a year ago when they pushed their Premier range in tier one cities. One of my main gross is it’s deteriorating TR which I believe will be regularize to max 120 days this yr, which is still higher than its industry norm of 90 days. A good CEO should be able to identify mistakes and rectify them.
Hello the gurus of Eratat -- ie, momoeagle, relaxing & Tactician. What are you comments on E. Lifestyle now? I am thinking of making my foray into this stock because FY2013 will be a 'clean' and pretty year. By 'clean' I mean no reno subsidies & no sales incentive to disturb the P&L
Richman – I bought them after the 2008 subprime crash and sold progressively from end 2009. I sold the balance several mths ago for various reasons. As I am already out of this counter, I’d rather not comment. I don’t own S-Chips or intend to buy any unless under very opportunistic situation. IMHO, I think S-Chips in general are unlikely to do well even if the market improves next yr as so many retail investors or funds have been burnt badly. Good luck anyway.
I have been buying equities for decades but only bought Eratat (my first S-Chip ) early 2009 at ave. price 8.5cts. The share actually rebounded close to its 30 cts IPO price late 2009 and early 2011, and I have sold more than enough to cover my outlay, hence the balance sold earlier this yr cost nothing. I did persevere by holding this S-Chip for more than 3 yrs as the few other S-Chips I bought after their prices crashed were opportunistic short term plays.
It is difficult to predict S-Chips, so I’d rather stick with counters which are more predictable and hopefully make money over time. Don’t think it is realistic to expect multi-baggers in short time as Mr Market is not that inefficient, though one can be lucky occasionally. IMHO, just using FA to pick S-Chips like they are Blues can be fatal. By the way, I only use my moniker “Relaxing” when I log-in and not as a guest. Good luck.
[hr]
[Guest 05-11-2012]:
Haha Relaxing one day you will rue your lack of peserverance. You sold at the bottom. Mark my words.
NextInsight
a hub for serious investors
