Eratat Lifestyle - Forward PE 1.5X

anyone going for the Eratat lunch briefing on Wednesday at M hotel? hope got good Q results

Following sounds obvious, hor, but it's the Truth (fr Bloomberg):


“You really do need to factor the uncertainty into your investment decisions,” Manpreet Gill, a senior investment strategist at Standard Chartered Plc, said in a Bloomberg Television interview from Singapore .

“You can’t really go out and say that we’ve solved the whole euro-zone debt crisis and this won’t come back to bother us again. These issues will still simmer over time.”

Starting all over again --- now at 12.1 cents
[hr]
[yinke8 14-02-2012]:
Eratat price fly over 0.160, it is great share! Eratat will reach next point 0.18 soon!

i really cant believe that eretat, having real problems with receivables, is priced above Qingmei, who has no real problems with financial statements and has more cashflow

Hi James,
Don't really understand your point because surely comparing price per share means nothing from a valuation analytical standpoint. Even comparing market capitalization which is in effect the combined price of total shares, would not really give a clear picture.
One should be using financial valuation comparisons such as P/E, P/B, Price to cash flow, Price to free cash flow etc. Price per share means nothing, using the prices per share of 2 companies for valuations comparisons is comparing apples to oranges. 
Golden Agri is trading at only 70 plus cents per share. This doesn't mean it's a penny stock. It's a is a multi-billion company (in terms of market cap valuation) and one of the components of the STI Main index. It's trading at 70 plus cents per share merely because there are many shares in the market.
Having said that I'm not vested in Qingmei or Eratat, but if I were to pick one I would also pick Qingmei. Just don't like the recent selldowns by major investors. 
 

Hi ethan, yes i didn't really elaborate but you get my drift. Qingmei is 100% (based on financial statements) a better stock than Eratat. Even if u use PSR, P/B, P/E, P/CF, qualitatively speaking, Qingmei is much more attractive. But Mr Market is such a depressive-manic toward it. Hope the sell down will stop this week.