Eratat Lifestyle

[SLC81]

cpib can't go to china and investigate[/code] them, Singapore court have no judistrition over china business. Damaging reputation or consumer backlash in Singapore against someone in china does not make sense. Valuebuddies, your#1 rule is to avoid them

[arriyana]

Anyone knows what is the proceedings like for Eratat now? The counter appears to be on hold since the scandal first broke out.

[sykn]

Yes, I was one of the suckers that lost money on this counter; this was my donation to the market as a newbie. I've been posting on other forums and some say that SIAS should be pushed to take action, especially when SIAS gave this company an award for transparency! How on earth SIAS can come to this decision is totally incomprehensible to me! Anybody knows how we victims can form a coalition to seek for redress and justice to be pursued, even if the crook doesn't get punished in the end?

[funman168]

I hv totally avoided s-chips after kanna from oriental century n china milk

[specuvestor]

HK investors probably think
1) Issued by SHK! Must be safe!
2) listed in Singapore! Super strict country! Must be safe too!

Furthermore it was packaged as ABS. This might "trick" some to think it's safe.

But what's the asset to back it up? Mr Lin's shares in Eratat. Hardly a good backing.


None of these are new info or conclusion and has been brought up by different parties for quite some time.

SHK Finance unit is looking to list... will be interesting to see their books which they said is mostly consumer

Sun Hung Kai Said to Pick Banks for $400 Million Finance IPO (1)
2014-03-21 10:57:02.847 GMT


(Updates with Standard Chartered sale in fourth
paragraph.)

By Fox Hu and Jonathan Browning
March 21 (Bloomberg) -- Sun Hung Kai & Co., a Hong Kong-
based brokerage, picked JPMorgan Chase & Co., Morgan Stanley and
UBS AG to work on an initial public offering of its consumer-
finance unit, said people with knowledge of the matter.
A listing of United Asia Finance Ltd. in the city may raise
about $400 million in the second half, the people said, asking
not to be identified because the information is private. Sun
Hung Kai owns 58.1 percent of the business.
Sun Hung Kai, which is backed by private equity firm CVC
Capital Partners Ltd., joins Standard Chartered Plc in seeking
to pare exposure to consumer-finance businesses in Hong Kong. UA
Finance offers products including second mortgages and “no-
show” personal loans that don’t require any identity documents
to be submitted, its website shows.
Standard Chartered, the U.K. bank that gets about three-
quarters of earnings from Asia, is seeking buyers for its Hong
Kong consumer finance business PrimeCredit Ltd., a person with
knowledge of the matter said Feb. 19.
UA Finance’s board is discussing a potential listing, Sun
Hung Kai said in a statement yesterday. The plan “remains at a
preliminary stage,” the company said, without providing further
details.
UA Finance expanded its network in China to 105 branches at
the end of 2013 from 79 a year earlier. The value of outstanding
loans jumped 21 percent last year to more than HK$10 billion
($1.3 billion), according to a statement this month.
The proposed listing of UA Finance is still at an early
stage and the board hasn’t approved the plan yet, Sun Hung Kai
said in an e-mailed statement today. It declined to comment
further.
London-based CVC Capital agreed to invest HK$2.14 billion
in Sun Hung Kai in 2010 and owns 16.1 percent of the company,
data compiled by Bloomberg show.

[Behappyalways]

(A) UPDATE ON GROUP'S FINANCIAL POSITION AND OPERATION; (B) FILING REPORTS WITH POLICE AND REGULATORY AUTHORITIES IN CHINA AND SINGAPORE; © RESIGNATION OF INTERIM CEO AND CFO; (D) OUTLOOK
http://infopub.sgx.com/FileOpen/Eratat-U...eID=299611


Cessation of Interim CEO and Chief Financial Officer
http://infopub.sgx.com/Apps?A=COW_CorpAn...RWI3VDITUK

[GPD]

Gone case liao.

[CY09]

I remember reading somewhere that mgmt. states they have a policy which is to distribute dividends at around 3- 5% to the current share price. Was it last yr they said this.

Secondly, the mgmt. mentions that they intend to deploy the cash for med to long term and hence it is possible that Eratat could be on some "big scale project" that will require them to use up 23 cents per share to the extent that they have to raise more capital. I have attended S-chip AGM this year and when quizzed on their cash hoard they have always given similar to answers to Eratat's: "They have some money-making project which will use their funds" or "We have to strike a balance between returns to shareholders and business expansion."

Which makes me wonder: are there so many big projects in China that are better than buying back their own shares which are equal to or less than 50% of their stated NAV ( if you believe the figures). Its either there are many frauds with large cash hoards or China is such a greater hinterland where you can expect 100% returns on top of capital in a short period of time

With this sequence of events from Eratat and Foreland, I think I may have found the answer to my last statement.

For Eratat equity holders, I think all they will get is a cert and with whatever real asset left on the B/S taken by SHK, since they are the first in the queue. While at it, I will like to flag two other stocks which has red flags: Qingmei & China Fibretech. The former has seen cases where the owner is constantly cashing out.

<this post is not a recommendation for you to short the mentioned stocks but to be wary of them only>

[sykn]

I already treated it as gone case since the day the trading halt was called. I guess such rude occurrences helps one to learn the ropes quickly (quick and the dead) - if you're not quick enough to learn, then you'll soon be dead! I must confess that quite a few forumers did raise the red flag on Eratat, but I was too blind to take heed. Well, for those suckers like myself who lost our money, the best thing we can do is lick our wounds (know what getting cheated tastes like), move on and don't succumb again to similar attractions in future. In this sense, we're operating like a cowboy town - if you get shot, that's your problem; there is no sheriff to come and help you. But if we help one another to look out for cheaters and shout loudly when we detect cockroaches, hopefully fewer newbies will fall into the ditch in future.

[ValueMaster]

so sad, think its a 100% loss for shareholders

I do have a very small position in Eratat, think I paid tuition fees for this lesson

I shall never buy S-chips again!!!