What's the story behind S-chips?

Several of them seem to be soooo undervalued...
 
China Fibretech has net cash value of 0.166. The price now is 0.03.
Qingmei has net cash value of 0.099. The price now is 0.074.
Eratat Lifestyle has net cash value of 0.108. The price now is 0.094.
Foreland Fabrictech has net cash value of 0.061. The price now is 0.081.
 
In addition, it's not as if these companies have been suffering severe losses. All of them are profitable businesses. What's the deal with these companies? Is it because of the textile industry, or because they are S-chips?
Please enlighten. Thanks[img]plugins/editors/jce/tiny_mce/plugins/emotions/img/smiley-laughing.gif[/img]

If you are bitten by shake, anything that look like snake you will be scare. so many s-chip gone with invester money, who dare to risk. And we are spoilt for choices with so many good reliable penny at SGX, so why take the risk??? But soon, they will be in play, your chance to get out, but to get out at the high price u bought will be wish, and for u a hope. but i think fat hope. Use this to get out and put that money to work eslewhere. Don't hope against hope.

Just now, i did not look properly, but all those u list here are co-incidentally potential chip, that would be in play.
 
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[Serendipity 17-06-2012]:

Several of them seem to be soooo undervalued...
 
China Fibretech has net cash value of 0.166. The price now is 0.03.
Qingmei has net cash value of 0.099. The price now is 0.074.
Eratat Lifestyle has net cash value of 0.108. The price now is 0.094.
Foreland Fabrictech has net cash value of 0.061. The price now is 0.081.
 
In addition, it's not as if these companies have been suffering severe losses. All of them are profitable businesses. What's the deal with these companies? Is it because of the textile industry, or because they are S-chips?
Please enlighten. Thanks[img]plugins/editors/jce/tiny_mce/plugins/emotions/img/smiley-laughing.gif[/img]

Hope Greece choose pro, if not then a huge part of the profit make last wk rally will be lost, but i will go short if mkt really come down heavily. But either way, it is not going to be a 2 to 3 days event. Get ready. see breaking news on CNBC. Our election also i dont bother, but this one whole world are watching.

China's economy will bottom out this quarter and rebound in the following three months as government measures to stabilise a slowdown take effect, according to advisor to China central bank

So which would you consider to be the other "good, reliable penny" at SGX. Valuation-wise, these stocks are now dirt cheap, as in Depression-era cheap. I'm not very optimistic on ChinaFibre because of its management, but Qingmei, Foreland and Eratat all look to be quite good. These counters are trading at PEs of less than 2. P/NTA is less than 0.5. All have huge cash hoards and zero debt. At the low prices, bad news seem to have been sufficiently priced into the stocks.
I personally am more biased towards Foreland and Eratat. Foreland has been increasing its earnings quarter-to-quarter when other fabric companies have seen their profits shrunk. This speaks a lot about its competitive position in the industry. Besides, Foreland has been operating at peak capacity for some time. Once they finish building their new factory, it's highly likely that earnings will continue to grow as they no longer have to turn away orders. A further positive point is that the company has a history of paying dividends when results are good.
Eratat suffers from the problem of having high trade receivables, and that recent quarterly profits has declined. However, from the past reports, managment has explained that it is making a shift towards higher-margin apparel as opposed to footwear over the past few years. Changes in product mix has shown this to be true. The shift to higher-margin apparel may prove to be a shrewd move, as several footwear manufacturers are now struggling(eg. even Qingmei) because of oversupply in the industry. Meanwhile, Eratat has been increasing its ASP over the years. As for the trade receivables, even if it turns out that a large part of the receivables are uncollectible, the company, which is now trading at less than net cash, should still be worth more than current valuation. If it turns out that management is honest and the transition period is complete(particularly after granting renovation subsidy in the second quarter) with no more surprises, there may be strong upswing in the stock.
I haven't really looked at Qingmei in-depth, but a quick glance seems to indicate that management doesn't seem to have anticipated the oversupply in the industry, so their competency may be suspect. Nonetheless, until recently, earnings over the years have been good. The stock seems promising now because of the cheap valuation, with large cash hoard and zero debt. There's room for good things to happen, such as an unexpectedly positive earnings report, or a good dividend payout.
Guys, do share what are the other stocks that you think are cheap and good buys. I'm interested to know as well [img]plugins/editors/jce/tiny_mce/plugins/emotions/img/smiley-laughing.gif[/img]
 
 
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[Guest 17-06-2012]:
If you are bitten by shake, anything that look like snake you will be scare. so many s-chip gone with invester money, who dare to risk. And we are spoilt for choices with so many good reliable penny at SGX, so why take the risk??? But soon, they will be in play, your chance to get out, but to get out at the high price u bought will be wish, and for u a hope. but i think fat hope. Use this to get out and put that money to work eslewhere. Don't hope against hope.