Eratat Lifestyle

Even World Famous Credit Rating can screw up BIG TIME.
Why would anyone care much about opinion of SIAS in their investment decision ?

(30-01-2014, 10:02 AM)momoeagle Wrote: This also puts to question the credibility of SIAS to protect investors.

I have been shot down many times by people who used SIAS to support their stand in this counter.

Just to recap...
Eratat: Receives SIAS Investors' Choice Award For Corporate Governance.
11 Nov 2013 11:28

Eratat Lifestyle Limited has been awarded Runner-up of the "Most Transparent Company Award 2013, Mainboard Small Caps Category", by the Securities Investors Association of Singapore at the SIAS 14th Investors' Choice Awards Dinner Presentation Ceremony.
http://repository.shareinvestor.com/rpt_...pe/si_news

Always tempted to look into this company since management has been open with IR meetings and fashion show. But I think the lesson learned for me is to always look at the company wearing the owner's hat.

Balance sheet is rich with cash and valuations are so low yet there has been no insider purchase while management is trying to convince the public that things are going to be better. Yet, they need to raise bonds at illogical rates with SHK.

I think the current issue is not as simple as it is. It has been 1 month since the last interest payment in Dec 2013. Management is not stupid. If the company's cash is real, they would have done all they could to get the cash. Now SHK is calling for full redemption.

When things doesn't square, it is always better to walk away.

This is why I reiterate, there are actually many junks on SGX and SGX being regulator and profit driven is losing it's creditability. It will not be long when more of the blumont, asiason, liongold unfold while more legit business will consider singapore as a listing hub.

Just on the sideline, STI has been a great disappointment this year/2013. With regional indices hitting new high, we have barely thread to those level. When you talk about globalisation and interconnectness of markets. I hardly see any positive correlation between STI, Hang Seng, Dow/S&P500. We always have our share of drop more than rises..

Absolutely true. But that is partly because we don't have a strong shareholder culture here yet were shareholders demand for their rights. Unlike States where activism is strong, the companies are more wary of it.

Bank deposits are supposedly the "safest" verifiable assets. In the case of S-Chips, I heard auditors have to call up the bank to verify the existence of the cash every quarter (can't find the source off hand). I would be quite surprise that the cash balance is completely fictitious. I thought the fraud would be more sophisticated than that.

(30-01-2014, 10:45 AM)dzwm87 Wrote: Always tempted to look into this company since management has been open with IR meetings and fashion show. But I think the lesson learned for me is to always look at the company wearing the owner's hat.

Balance sheet is rich with cash and valuations are so low yet there has been no insider purchase while management is trying to convince the public that things are going to be better. Yet, they need to raise bonds at illogical rates with SHK.

I think the current issue is not as simple as it is. It has been 1 month since the last interest payment in Dec 2013. Management is not stupid. If the company's cash is real, they would have done all they could to get the cash. Now SHK is calling for full redemption.

When things doesn't square, it is always better to walk away.

Yes !. Don't lose money is the Rule.

(30-01-2014, 11:46 AM)Wildreamz Wrote: Bank deposits are supposedly the "safest" verifiable assets. In the case of S-Chips, I heard auditors have to call up the bank to verify the existence of the cash every quarter (can't find the source off hand). I would be quite surprise that the cash balance is completely fictitious. I thought the fraud would be more sophisticated than that.

That's what I thought in the past but a friend of mine mentioned something that is pretty reasonable.

How true can you verify bank statement in emerging markets like China? There is a higher chance of the branch manager being in cahoots with the manager to produce a fake bank statement.

(30-01-2014, 11:46 AM)Wildreamz Wrote: Bank deposits are supposedly the "safest" verifiable assets. In the case of S-Chips, I heard auditors have to call up the bank to verify the existence of the cash every quarter (can't find the source off hand). I would be quite surprise that the cash balance is completely fictitious. I thought the fraud would be more sophisticated than that.

i think this can be easily manipulated. You can just transfer in and out. Or a bank staff collaborate with them. It has to be asset held up that cannot be released unless majority shareholder approves.

(30-01-2014, 11:46 AM)Wildreamz Wrote: Bank deposits are supposedly the "safest" verifiable assets. In the case of S-Chips, I heard auditors have to call up the bank to verify the existence of the cash every quarter (can't find the source off hand). I would be quite surprise that the cash balance is completely fictitious. I thought the fraud would be more sophisticated than that.

CNY period is where most china towkay or businessman, plug and fill gaps within their own portfolio of business. I think even if the money is legitly present, There is already some form of fraud/ money laundering surface. This also points towards how deadly shadow banking in China will be when it unfold itself. If the individual business books are not clean, how do you ensure the banks books are?