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.

Hi James,

Don't really understand your point because surely comparing price per share means nothing from a valuation analytical standpoint. Even comparing market capitalization which is in effect the combined price of total shares, would not really give a clear picture.

One should be using financial valuation comparisons such as P/E, P/B, Price to cash flow, Price to free cash flow etc. Price per share means nothing, using the prices per share of 2 companies for valuations comparisons is comparing apples to oranges. 

Golden Agri is trading at only 70 plus cents per share. This doesn't mean it's a penny stock. It's a is a multi-billion company (in terms of market cap valuation) and one of the components of the STI Main index. It's trading at 70 plus cents per share merely because there are many shares in the market.

Having said that I'm not vested in Qingmei or Eratat, but if I were to pick one I would also pick Qingmei. Just don't like the recent selldowns by major investors. 

Starting all over again --- now at 12.1 cents

Following sounds obvious, hor, but it's the Truth (fr Bloomberg):


“You really do need to factor the uncertainty into your investment decisions,” Manpreet Gill, a senior investment strategist at Standard Chartered Plc, said in a Bloomberg Television interview from Singapore.

“You can’t really go out and say that we’ve solved the whole euro-zone debt crisis and this won’t come back to bother us again. These issues will still simmer over time.”

Guru AKSIN told me:

4 good reasons why the bear is dead on Monday.

1. Budget had some goodies for oil industries etc.
2. China reduce banks reserve requirement.
3. STI held on to 3000 on Friday.
4. Greece issue will be settled.

The bull is back ----- U.S. stocks surged Thursday, with the Dow industrials less than 100 points from the 13,000 level, as the outlook for Greece’s bailout improved and American jobless claims slid to a nearly four-year low.

The market advance comes along with “continuing favorable economic data,” said Jeffrey Saut, chief investment strategist at Raymond James. “The laggard has been employment, but it’s a damn sight better now than in the first, second or third quarter of ’09.”

A day after its worst session of this year, the Dow Jones Industrial Average rose 123.13 points, or 1%, to 12,904.08, with all but one of its 30 components in the black. The gain, which put the blue-chip average back at its highest since May 2008, more than recovered Wednesday’s drop of 97.33

Does anyone think it's a young bull, or it's turning into Greek bullshit?

Bloomberg quote:
“In the absence of a fresh catalyst, the current rally in equities is looking rather tired,” said John Woods, the Hong Kong-based chief Asian strategist at Citigroup Inc.’s private bank. “A modest near-term correction is likely. The positivity around issues such as Greece is beginning not so much to wane as to sour.”

So far it's been a small-cap party -- wait till the funds get into the blue chips in a bigger way than currently. On top of that, with property prices set to decline, the property $ is going to cheong into the stock market? Time will tell.

Let's hope Europe doesn't turn out to be the party pooper.

James, this is a young bull market. It's buy & hold -- and forget about REITs and other defensives. They are left far behind in this rally.

when the stocks was going down, you can come out with all the reasons why it's going down, like it's high account receivable.

now the stock price recovers 50% in 2 weeks, do we need a reason to know why ? hehe....

those who sold @ 13 after the last results really dunno what to say. maybe they pick it up again at 0.1x . or will they come in when eratat pulls back ?

Uptrend intact, should break 16c soon...