Eratat Lifestyle

"What with more red flags added next yr even if it goes 20 cents" - u kinda sound very offending to me when u urself dun bother to find out abt the co n do not know a single thing abt the co and then make this kind of silly remarks.

Please kindly take back this sentence as i am being polite.

Momoeagle, are u really tat free tat u hv to spend ur time everyday bashing this stock n wat u said are things u hv repeatedly said umpteen times. I hv honestly admit that i am kinda frustratated by ur comments although i am trying hard to control it. But like i say just wait n watch . I know the co is working hard to embark on their next major phase of expansion and Eratat today is much stronger than be4.

Qingmei, fuxing n china sports are trading around 3 c n three of these companiesare making losses. Eratat is doing well profitably n there is no reason eratat to go below 1,2 or 3 c below these three companies. The share price is indeed at its bottom n there will be people keen to collect

Dont talk abt starhub epl or 2009 or 2010. When starhub losts its EPL, u are nt the only one who hv traded starhub. I prefer to buy small young companies, waitbfor it to grow n get it compounded

I believe the financal report for Q3 will be out by this friday or on 04 Nov after trading hours..

I will refrain from any comment till I see the number which will be coming earliest maybe in another 25 hours??

Newbiestock, I'm being polite too.

Honestly, your standard of English sucks, and you have misunderstood me yet again (not the first time). If you are frustrated, trust me, I am frustrated by your consistent misunderstanding and inaccurate summary and paraphrasing of my points.

For the benefit of your poor command of the English language, I shall paraphrase it in simpler terms.

" the same views have been maintained since 2011, with more red flags added on over the years."
In simple terms, since 2011, there have been more red flags. Nowhere did I say more red flags will be added next year. Like duh.....
It is totally different from your re-quote which makes no sense at all.

Seriously, go check with anyone with a decent standard of English whether your "What with more red flags added next yr even if it goes 20 cents" has the same meaning as what I have posted earlier. I wouldn't be surprised if you find it offending as you are understanding the English all wrong.

I would give you the advice of taking backing your sentence instead for it states what you think you have read and clearly not what I have posted at all.

And of course, it is up to you to view what I termed as red flags as perfectly fine events without any questioning. I didn't even touch on this further.



Bearish posts on stock counters always bring frustration to overly bullish people. I'm not surprised at all.

Evidently, posts casting a different light on a counter doesn't seem to be welcomed. I would have thought having a different perspective gives more depth and thought to a forum thread, as well as to any potentially new investors. Seriously, to me, this thread has progressed far fundamentally, because I do think more thought has been put into this counter and posted on the thread. One example is the numbers comparisons to competitors now being brought up, something which wasn't well discussed back in 2011 and 2012.

This will be my last post in this thread. I came back posting because someone previously commented and requested in my blog to come back and post my thoughts on this counter, and another through pm in another website. But I see no point in posting now.

Good luck on this company.

Momoeagle u go back reread all ur posts from scratch again.

I am really tired n dun feel like arguing over this anymore.

just watch the result every quarter. It is expanding n its net profits gonna grow n grow. And i am also expecting it to give a increase the dividend per share next yr as well.

Just watch la.

We comment every quarter result, nt comment everyday. I cant take it siah when the sane comments are made over n over again.

Take note that i am using mobile phone to type, nt from my laptop.

rock,

no hard feeling at all, your advice was made with good intention, your concern that I may lose my money is very much appreciated.

every piece of advice and opportunity in exchanging views can be a valuable learning experience.

I had divested all of my eratat holdings in jan 2013 and am considering buying in at this level.

I am sorry if I had given u (and momoeagle and others) the impression that that I only looked at the share price without looking at the business.

in investing, looking at the share price without looking at the business is equivalent to “flying blind”, and looking at the business only without looking at the share price is also flying blind, we need to look at both

after all, value is quantified and measured with a price in dollar and cents
A good business has a price
A bad business has a price
A high growth business has a price
A sunset business has a price
An expensive stock has a price
A cheap stock has a price
One pays a price to buy a stock
One sells at a price to dispose of one’s stock
Bad news has a price
Good new has a price
A winner has a price
A loser has a price
A sinking boat has a price
A sunken boat has a price

Whatever qualitative analysis one does on a stock to decide whether to buy, hold or sell, ultimately a value or price has to be arrived at.

due to market inefficiency, sometimes, there exist mismatch between a good business/company and its share price, one should buy when it is undervalued and I sell when it is overvalued, and should never fall in love with a stock, which I agree

at current price, margin of safety has certainly increased significantly,
If one thinks it is still overvalued, do not buy
If one has doubts on the business, do not buy
If one has better counters to buy with better returns, do not buy
If one understands the business and has great conviction that it is undervalued, buy

what seems undervalued to one may seem overvalued to another.

Hi UB40,

I agree with you on the assessment:

at current price, margin of safety has certainly increased significantly,
1)If one thinks it is still overvalued, do not buy
2)If one has doubts on the business, do not buy
3)If one has better counters to buy with better returns, do not buy
4)If one understands the business and has great conviction that it is undervalued, buy

I fall under 2) and you under 4)

I ask this with good intention and sincerity.

What gave you the conviction?
-> Is it the business model?
-> Is it the numbers? (Whatever numbers you can get from the financial report?)

I know Boon from valuebuddies work in China at times, and he visit the shops, look at the recruitment activities going on in the newspaper and such.

Did you do such legwork? It is extremely important since it is a S-chip, and its a S-chip with red flags, so it is extremely important to get the info from various sources, it could be your own legwork or you can work in the industry or you know the competitor well, etc.

If you have information besides the "paper numbers", maybe you can kindly share them.

Paper numbers might suffice when you are dealing with companies such as SPH, where you can see for yourself the amount of advertisement, or perhaps property developers in Singapore. BUt we are dealing with s-chips, China's culture of business might not be the same as in Singapore.

I will be very interested indeed, if you have some information for your conviction, perhaps, you know one of the distributors, etc.

Understand that business plan, numbers are just a paper when there is doubts, no point returning to the paper, U need real info from real sources.

Seriously, I have no problems with their business plan, I understand why they need so much cash and given the phase of growth they are in, they could operating at negative cash flow for a while. i am fine with that.

Neither am I concerned about valuation, it is darn cheap if you use valuation such as PE, PEG, cash even after capex.

But I cannot fathom the SHK deal, cannot understand why YSZ sold out in 1 shot, not over a period of time. I cannot understand why it is taking so long to get the distributors they mention 2 years ago, cannot understand why they stop giving orderbook figures for lame reasons that they are roughly the same, I dun understand why they and their competitors dun tell consumers where their shops are.

However, I never say never, if they start addressing some of the concerns, they start showing distributors, they start showing where the shops are, who their distributors are, and there are info from the distributors' websites that I can cross-checked with Eratat figures, I start seeing shops when I visit china, i would buy. I visit Nanjing, Suzhou, Hangzhou, Shanghai, Beijing major shopping belts over the years, I have no problems finding xtep, Anta, Li Ning or some of the more renowned brands, not once did I find Eratat. (i know Eratat is not big compared to the big boys, but not even 1 shop in the major shopping belts beside shanghai?) I Know Boon mention he saw a number of shops opening in Shanghai, that actually really get me tempted to buy at 8 plus cents, then YSZ come and spoilt my appetite.