they will reveal the confirmed new distributors by end of this year. first, they hv to settle the coming trade fair first for next year order.
study the P&L. And, its cash balances have been growing and the business requires minimum investment to grow. U look at Sino Grandness, despite all the profit growth, why isn't its cash balances growing every year.
all is still going well in Eratat. so how? retail investors need a double confirm statement from the co to say "everything is ok" be4 they are comfortable buying??? Whatever information the company needs to release, they have already adhere to the sgx rules.
momoeagle, most likely, ye sanzhi sold all his shares to a few people he knew to avoid the 5% declaration. I expect the people from ye sanzhi still holding onto the shares which they bought at 13.8 cents. before the 32m of married deal shares on aug 21st, the naked short accumulated before the married deal is certainly not enough to cover the 32 m shares.
I would expect the people who bought from Ye Sanzhi to continue to still holding the shares. Because after aug 21st, the share price was trading just below 13.8 cents and I dun expect them to buy from Ye Sanzhi and dump at a loss.
For Qingmei, it is loss making now so I guess dun compare Qingmei with Eratat. When sports apparel industry peaked, Qingmei of coz makes a lot of money.
To be fair to Eratat, it is still a profit making company, giving dividends yearly without fail. Simply put, it doesn't deserve the valuation right now at 9 cents.
look at courage marine,Q2 2013 is still at a loss. No dividends since 2011 and last close yesterday was at 9.5 cents. In what way is Courage Marina valuation justifiable if one will to compare it with Eratat? Or because courage marine has assets like ship vessels whereas Eratat is asset light, other than a shoe production factory???
the best asset is still cash and Eratat cash balances are growing every year, unlike sino grandness. I am not worried about the receivables because eventually, the money will still be collected and convert to cash. Just a matter of time only.
Viva wrote: If anyone is interested enough, just go to the corporate secretary (Boardroom Pte Ltd) and pay a small fee ($5, I think) to view the entire shareholder list (which comes with their addresses & IC nos.).
today's closing will be impt for eratat. if it can close up, then should be able to confirm the bottom up.
despite the massive selldown these past few days, the volume wasn't thin and the volume has been expanding, so definitely, there are people collecting.
The P&L is not as good an indicator as the ROE to determine whether it makes sense to take on the debt.
ROE indicates how well the company is able to generate profits based on its share equity. Not about profits and losses.
Because previously, the company has minimal debts, which is why I use ROE in my judgment on how well the company used its existing capital. 14.7% certainly doesn't look very promising.
On top of that, the overall gross profit margin is 31.2%, and while the gross profit margin for apparels is higher at 36+%, the net profit margin is 22% before tax. Net profit after tax is 16.4%. The inventory turnover better be sufficiently high to cover the bond interest rates.
If cash balances are growing that fast, then why take on additional debt of a mere 20% of its cash balance? Furthermore, if it is as said that the business requires minimum investment to grow, why the need to borrow cash for growth???
Momoeagle, with the additional cash, they can grow faster. if the bond did nt clear, then probably they will expand slower, maybe having lesser of their flagship store instead of opening 10 flagship store at one go.
The expansion plan is gg on, including their shanghai HQ and their flagship stores that they plan to open and that should be able to contribute significantly to their P&L, especially in 2014.
Even though they now dun declare their trade fair book order volume, u can still estimate their coming revenue.
Did u look at the trade deposits for apparels as shown in the 2013 1H. Did u all notice that the trade deposits for autumn-winter 2013 for apparels actually increased by nearly 20% compared to the previous amount for autumn-winter 2012? The footwear revenue may stabilised or decreased a bit but the growth in apparel revenue should be able to offset the quarterly loan interests and create a net quarterly growth for the 2H.
I wonder how many really study that figure...
momoeagle wrote: The P&L is not as good an indicator as the ROE to determine whether it makes sense to take on the debt.
ROE indicates how well the company is able to generate profits based on its share equity. Not about profits and losses.
Taking on more debt does not change the share equity, but because previously, the company has minimal debts, which is why I use ROE in my judgment on how well the company used its existing capital. 14.7% certainly doesn't look very promising.
On top of that, the overall gross profit margin is 31.2%, and while the gross profit margin for apparels is higher at 36+%, the net profit margin is 22% before tax. Net profit after tax is 16.4%. The inventory turnover better be sufficiently high to cover the bond interest rates.
If cash balances are growing that fast, then why take on additional debt of a mere 20% of its cash balance? Furthermore, if it is as said that the business requires minimum investment to grow, why the need to borrow cash for growth???
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