Eratat Lifestyle

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11 years 4 months ago - 11 years 4 months ago #14669 by greenrookie
Replied by greenrookie on topic Eratat Lifestyle
I think some calculations here didn't take into account the quarterly interest payment. you cannot just take the difference between subscription amount and the par value.

So the interest rate is effectively higher than what you calculate.

I am not a accountant, so I might be wrong, but I understand d.o.g calculation than what some are calculating here.

Eratat really is a classic case study for physiological analysis. Those who see it as half full will be damming those who see it as half empty.

That Lin JianCheng put his fortune on this and rope in SHK are defintely plus points.

That the bonds interest are exorbitant is a fact, bond interest for other china's companies are also high, given the tightness in funds in china, banks are more willing to loan to SOEs, hence no surprise, that eratat need to pay such a rate. But the rate is high, that is a fact. I am not concern whether it makes more sense to take a loan, because i believe it might really be difficult to get a bank loan in china.

But can the growth, when it materialised more than offset the increase in financial costs?

Why not draw down some of the cash first? the amount raise is a fraction of the cash eratat has? why the urgency?

ANyway, I am talking to myself.
Last edit: 11 years 4 months ago by greenrookie.

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11 years 4 months ago #14670 by GEO
Replied by GEO on topic Eratat Lifestyle
Shouldn't eratat consider rights issue or placement rather than pay such a deal

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11 years 4 months ago - 11 years 4 months ago #14673 by ethan999
Replied by ethan999 on topic Eratat Lifestyle
Since when does principle amount include interest payments?
Last edit: 11 years 4 months ago by ethan999.

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11 years 4 months ago - 11 years 4 months ago #14674 by newbiestock
Replied by newbiestock on topic Eratat Lifestyle

GEO wrote: Shouldn't eratat consider rights issue or placement rather than pay such a deal


At 13.5 c, too cheap to do any rights issue or placement... shareholders will complain abt the dilution at such a cheap price.

If eratat really wan the funds from the warrant badly,, something will surely be done to push it up. Else why go through this trouble to hv bond cum warrant... as every new fund raising exercise is very costly to do.

Also provided the global market sentiment remains good till the maturity date.
Last edit: 11 years 4 months ago by newbiestock.

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11 years 4 months ago #14675 by chinsoonyuen
Replied by chinsoonyuen on topic Eratat Lifestyle
If Eratat cash pile is real, why need to issue bonds? At such high interest rate, one will think Eratat is very desperate!

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11 years 4 months ago #14677 by newbiestock
Replied by newbiestock on topic Eratat Lifestyle
For the next phase of aggressive expansion lol

The cash pile is real else the bond deal won't be able to pass through.

Normal for companies to raise more funds than they need... need to also aside some cash for reserve use, which should not be touched.

chinsoonyuen wrote: If Eratat cash pile is real, why need to issue bonds? At such high interest rate, one will think Eratat is very desperate!

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