Eratat Lifestyle

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12 years 4 months ago #8471 by momoeagle
Replied by momoeagle on topic Re:Eratat Lifestyle
Hi viviene,
 
let's just say I like counters like SPH and Starhub because they operate in an industry with extreme high barriers to entry.
I still remember the days when analysts were proclaiming how bad Starhub was after it lost its BPL bid. Furthermore, Starhub has high amount of debts. Was it safe? To most analysts, no. Some were even claiming $1.20 for Starhub (that's a 40% expected decline at that time), and that their dividends was not sustainable. Yours truly bought at this time.
 
 
If one took a closer look, Starhub has high FCF, and proved them wrong by raising its quarterly dividends (still less than FCF). This was done while debts are being paid down. And operating in a tightly controlled market, their revenue was more or less assured. Consequently, a ~50% rise for a defensive counter.. Furthermore, we get to see and experience Starhub business first-hand. It is extremely easy to understand this business without getting too detailed.
For our own academic purposes based on my personal selection of counters, I shall compare apples with oranges for Starhub and Eratat. FCF was negative in 2010, and positive in 2011. But sales incentive made 2011 negative again. Dividends are still paid, but on the back of negative FCF. There are no debts, but their market is highly competitive with extreme low barriers to entry. We do not see the business first-hand as well, and to me, it would have been self-delusionary if I says I know and understand Eratat's business very well based merely on their financial numbers and presentations. So naturally, I  could be wrong in my earlier analysis of Eratat. As mentioned earlier, it was my personal conclusion based on publicly available information, and of course, YMMV.
 
 
It is always interesting to read reports of different companies in my free time and learn how they conduct businesses. :)  Whether one is right or wrong in one's analysis, something can always be learned from the reports.
And of course, one can always profit from price movements without FA; that's afterall the basis of TA. Good luck to you and wish you huat huat!

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12 years 1 month ago #9332 by Rich
Replied by Rich on topic Re:Eratat Lifestyle
Lumiere Capital has invested in Eratat Lifestyle. Just check with people who know.....

Not surprising -- you read this article on Lumiere fund managers talking about what they are hunting for and what they luv:
Lumiere shopping for bargains in China consumer stocks
By Yvonne Chan | 26 April 2012  
 

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12 years 1 month ago #9343 by relaxing
Replied by relaxing on topic Re:Eratat Lifestyle
Reck – Thanks for the info.  If funds are buying this stock , they’d only nibble slowly as they want to buy cheap too.  Those who sold at low 9.1 cts today are actually selling at 8.6 cts, considering the 0.5 cts dividend coming next mth.  Are ppl selling due to margin calls or are short sellers at work ?
I think ppl should only buy S-Chips with spare cash as they are mostly  illiquid and  easily manipulated.  Investors should do their homework well and not listen to rumors, namely never chase up stocks  or panic sell  ( short sellers are good at creating this ).  Only average down  with spare cash , and even then take your time to do so.  My views only.

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12 years 1 month ago #9349 by relaxing
Replied by relaxing on topic Re:Re:Eratat Lifestyle
Just to clarify, I am not referring to the usual speculative intraday short sellers as they’d not dare try on undervalued illiquid counters. In fearful times, there are those who borrow shares to short sell or groups who pass their shares  around to beat down prices to collect. Top professionals make money whether the markets go up or down.  In Wall St, shorties  work hand in hand with financial “gurus” via their blogs, mass media, brokers etc.   Retail investors have no chance unless they keep a cool head. My views only.
[hr]
[relaxing 28-05-2012]:

Reck – Thanks for the info.  If funds are buying this stock , they’d only nibble slowly as they want to buy cheap too.  Those who sold at low 9.1 cts today are actually selling at 8.6 cts, considering the 0.5 cts dividend coming next mth.  Are ppl selling due to margin calls or are short sellers at work ?
I think ppl should only buy S-Chips with spare cash as they are mostly  illiquid and  easily manipulated.  Investors should do their homework well and not listen to rumors, namely never chase up stocks  or panic sell  ( short sellers are good at creating this ).  Only average down  with spare cash , and even then take your time to do so.  My views only.

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12 years 1 month ago #9377 by Val
Replied by Val on topic Re:Eratat Lifestyle
Eratat lady making presentation at CIMB next Tuesday. Anyone going?

www.itradecimb.com.sg/app/ref/eDetails4.htm

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12 years 1 month ago #9406 by relaxing
Replied by relaxing on topic Re:Re:Eratat Lifestyle
 
Great that Eratat mgt is still actively engaging investors.  I think it is the only S-Chip which conduct analyst/investor briefings after every quarterly report. On top of this, they also conduct briefings with CIMB and participate in investor fairs. From memory, last yr’s dividend date was announced mid-June and paid mid July. Presume the coming 0.5 cts dividend will be paid abt the same date.
[hr]
[viviene 01-06-2012]:

Eratat lady making presentation at CIMB next Tuesday. Anyone going?

www.itradecimb.com.sg/app/ref/eDetails4.htm

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