Eratat Lifestyle

(05-06-2014, 10:53 AM)CityFarmer Wrote: I seldom post on S-Chip topic, since I am probably the odd ones, which might trigger a flaming unnecessary.

I thought bro CF is now the newly appointed IR of YZJ?

For Me,

I check up the income tax paid by the company china subsidaries (should be at footnote of AR), baidu it and you might see if the subsidary name appear in the right tax bracket. Thats how I give Eratat a miss...

I think there might be a few good gauges.

1) If the Company has paid out more dividends to minority investors than it has taken from them via IPO / placements, it is quite unlikely to be a fraud since it would imply the Management was subsidizing the fraud. They would have been better off from not listing the company in the first place.

2) Profits and cash earned in China should flow out of China to the offshore holding company to pay the dividends. The withholding tax paid gives an idea on the quanta of profits being paid out from the Chinese subsidiaries to the offshore holding company. If there is no profit flowing out, then it implies the cash is being retained solely at subsidiary level and any dividend being paid could have been funded by the IPO Proceeds residual or borrowings from the offshore level.

3) I value connections and parentage far more in Chinese companies than in local companies. Ideally, the company would have SOE backing. Personally, I rather the CEO to be an employee of the SOE than a controlling shareholder - the latter could have poor corporate governance. Moreover, it is far riskier for any worker to defraud a SOE company than a Singaporean owned one.

4) This is a sticky point. I would simply avoid any crazily high margin or high returns companies. Common sense dictates if the industry is competitive and the company is fairly small, it makes no sense for it to post insanely high figures. This means a simple stock screen approach will not work for investing in S Chips.

Judging by the sheer amount of additional work, I can understand the rationale behind avoiding S Chips entirely.

(05-06-2014, 11:36 AM)valuebuddies Wrote:

(05-06-2014, 10:53 AM)CityFarmer Wrote: I seldom post on S-Chip topic, since I am probably the odd ones, which might trigger a flaming unnecessary.

I thought bro CF is now the newly appointed IR of YZJ?

I posted on S-Chips, but seldom on S-Chip's topics

I posted in threads of YZJ, China Sunsine, and Sound Global before its delisting from SGX, among others

I seldom post on S-Chip topic e.g. How to ensure the cash is real? We should never trust S-Chips etc.

As an example, I am more than willing to discuss pros and cons of YZJ, but not on trustworthiness of YZJ as a S-Chip.

(vested in YZJ, divested on Sound Global, and monitoring China Sunsine)

(05-06-2014, 01:54 PM)Greenrookie Wrote: For Me,

I check up the income tax paid by the company china subsidaries (should be at footnote of AR), baidu it and you might see if the subsidary name appear in the right tax bracket. Thats how I give Eratat a miss...

What are the keywords in chinese you used to baidu? Thanks !

Quote:I am more than willing to discuss pros and cons of YZJ, but not on trustworthiness of YZJ as a S-Chip.

City,
You know that I am a value buddies, right?
Although I tikam tikam to ease my itchi fr time to time.

So, I need to be very clear when I initiate a game plan, am I tikam or am I a Value Buddy?
I need to be 100% clear before I formulate my game plan.

how can I be so sure?
Very eazy.
If a company pass all my criteria then activate value buddy game plan.
If a company pass every criteria except ONE, activate tikam flighting mode.
If a company pass almost all criteria but shy of one or two, ignore it totally. It's not worth my $$$.

So, can you guess my investment strategy for S-Chip?

LC



Earth day - save the world everyday.

(08-06-2014, 05:30 PM)touzi Wrote:

(05-06-2014, 01:54 PM)Greenrookie Wrote: For Me,

I check up the income tax paid by the company china subsidaries (should be at footnote of AR), baidu it and you might see if the subsidary name appear in the right tax bracket. Thats how I give Eratat a miss...

What are the keywords in chinese you used to baidu? Thanks !

Era tat 晋江税务，江苏税务，top100 tax payers in jiangsu etc. I keep going and going, google, baiu, jump from one key word to another , can't remember the actual words

s-chips are for punting and trading. Even so call good one, we may not be sure.
In this case it is better to use chart to trade/punt.

I will prefer not to invest and base on s-chips "good" F.A. Too many "Holland" s-chips.

(05-06-2014, 09:48 AM)Harvest Time Wrote: Many s chips claim to have a lot of cash. But eventually cash also disappear.
The only proof to show to us that the companies are sound is to consistent dividend declare by companies.

Eratat gave pretty consistent dividends

Eratat ask for money quite consistent.

May 2013
proposed issue of (i) non-convertible bonds of up to an aggregate principal amount of RMB250 million,
and (ii) up to 82,500,000 warrants, each warrant entitling the warrantholder to subscribe for one (1)
new share in the capital of the Company (together, the “Proposed Issue”)
http://infopub.sgx.com/FileOpen/Eratat_2...leID=13168
Money raise RMB$250m (slightly more than S$50m)


Placement 15m shares at 21.52 cents on 21 Apr 2011
http://infopub.sgx.com/FileOpen/Eratat-P...eID=112564
Money raise $3.228m


Placement 45m shares at 20.2 cents on 14 Apr 2011
http://infopub.sgx.com/FileOpen/Eratat_2...eID=107200
Money raise $9.09m


Apr 2008
The 163,000,000 Invitation Shares which are the subject of this Invitation comprising 124,883,157 New Shares and 38,116,843 Vendor Shares (IPO price at 30 cents)
Money raise $37.465m


How much dividend does Eratat pay so far?