The director SOLD off ALL his share is the MOST troubling concerned of all. Who doesn't want profit and the director SHOULD know the company performance h/e he chose to UNLOAD everything ???? EVERYTHING he has !!!!! Sell at 13.8cents and the share keep coming down from 22Aug !!!!
When you do a cost-benefit analysis, you do not just calculate the absolute amount gained or lost if the stock reaches a certain prices, you also have to multiply it by the probability of it occurring (%). So all these figures you are putting out before us mean nothing if you do not consider % (probability) of occurrence.
I've done my cost-benefit analysis of investing in Eratat and have decided it's far too big a risk to take. Especially after major shareholder Ye Sanzhi deciding to sell all his shares at such a low price (assuming their books are correct) and the company having to borrow so much at such a high effective interest rate (>32%) despite claiming to have so much cash. Also, all these years and not a single share buyback despite an abysmally low price on paper.
Evidently the market agrees with this viewpoint and hence the >30% drop in its stock price over the last couple of months, despite the FT ST China Index (local S-chip index) remaining more or less flat during this period.
The worst of all is when I wrote to their IR VP they do not bother at all. Unlike many S-chips the IR will reply. This shows the company has NO interest in small share holders or the company does have some sort of trouble ??? It make everyone guess.
True, YSZ sold his shares (6.67% stake) at 13.8 cents, but the share price has fallen 5 cents (36%) to 8.8 cents. This is one side of the story.
The other side of the story is why LJC who owns 25.34% stake (about 4 times the amount to YSZ used to own) willing to pledge his entire stake to secure the bond warrant issuance?
Both are insiders. YSZ want to make profit, you and I want to make profit. You think LJC do not want to make profit? You think YSZ knew something LJC didn’t know?
Skeptic,
You said it was too big a risk to invest in Eratat, at 13.8 cents, I agreed.
But at 8 cents, what are the risks?
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At 1 cent, what are the risks?
How do you work out the probability of occurrence for share price to be 8 cents, 7, 6, 5, 4, 3, 2, 1 cent? Can anyone help? I do not know, that why I used average down.
LJC may not have the choice at the moment h/e YSZ is directly reflect the issue at hand hence take profit immediately. Once LJC start to sell the company is gone isn't it ? Both are in very different position but the indication is clear to the public.
