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STARTING IT'S SURGE to > 25 cents !!!!
No reason SHK will agree to a warrant issue with 25cents exercise price , share will fly soon !!!
Eratat lifestyle is like G2000 plus NIKE and Kappa put into one company
strong accumulation today
The numbers look good but just can't run. Has been like this for many years. Anyway fashion industry the business life cycle quite short. And today it went up 3 pips with just 4 lots???
LOAD NOW ... ERATAT is itching to break 9c
Some listed chinese co are ah long king..they loan money from.bank and loan it to small.co which hard to get loan.at very interest rate ..fd interest in china.bank around 5-6%.....so next time maybe will.ask the cfo..where the money ??
danger ( Date: 16-Dec-2013 10:05) Posted:
Eratat worked on a deal with Sun Hung Kai Securities (SHK) over the last 1.5 years or so, during which SHK conducted extensive due diligence on Eratat.
SHK is viewed as a strategic partner who would " increase the exposure of Eratat shares to a new investor community, funds and financial institutions in HK and the PRC," said Ken.
SHK also has a business network which could open doors to new contacts and opportunities in HK and the PRC for Eratat.
In that case, the actions and contributions of SHK would be something that investors would look forward to hearing about in future.
A key feature of the unconvertible bonds subscribed by SHK is, Eratat has the sole option to redeem them in full before they mature in two years' time.
And Eratat stands to enjoy significant upside if the 82.5 million warrants also issued to the bond holders are exercised at any time over the next two years. This would happen only if the stock rises above the exercise price of 25 cents (which is a premium of 85% over the recent price of 13.5 cents.) ... i.e - SHK will panic if Eratat don't rise above 25c .. warrant expires worthless within 2 years .
A full exercise of the warrants will haul in RMB103 million for Eratat
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when you invest cheap now , you've got nothing to lose
It's not like you are chasing the stock now at 25c
Buy when nobody is buying yet
Dont waste time on this counter, uselesss china penny!! Mai hai lang..
LOAD CHEAP NOW !
9 cents hit today . Watch for the 25cents mark soon ...........
Eratat worked on a deal with Sun Hung Kai Securities (SHK) over the last 1.5 years or so, during which SHK conducted extensive due diligence on Eratat.
SHK is viewed as a strategic partner who would " increase the exposure of Eratat shares to a new investor community, funds and financial institutions in HK and the PRC," said Ken.
SHK also has a business network which could open doors to new contacts and opportunities in HK and the PRC for Eratat.
In that case, the actions and contributions of SHK would be something that investors would look forward to hearing about in future.
A key feature of the unconvertible bonds subscribed by SHK is, Eratat has the sole option to redeem them in full before they mature in two years' time.
And Eratat stands to enjoy significant upside if the 82.5 million warrants also issued to the bond holders are exercised at any time over the next two years. This would happen only if the stock rises above the exercise price of 25 cents (which is a premium of 85% over the recent price of 13.5 cents.) ... i.e - SHK will panic if Eratat don't rise above 25c .. warrant expires worthless within 2 years .
A full exercise of the warrants will haul in RMB103 million for Eratat
usually warants are issued at much cheap valuation or discount compared to current share price , so as to enticed investors to buy and subscribe .
So what is the logic of the warrant excercie price set at 25c it's NET CASH VALUE .. 3 times more than current price
Unless ERATAT is going to cheong big time
again we have to think why
Sun Hung Kai & Co. Limited owned by Hong Kong's 2nd richest man after Li Ka Shing wanted to enter an agreement with Eratat for the bonds and warrants issue .
And at anytime , eratat can redeem back the bonds within 2 years . And the exercise price of the warrant dont come cheap to SHK . It will be at 25cents per share/warrant .
If current market share of eratat is below 10c now , why SHK so stupid to set warrant price at 25c ?? better off buying from open market . So unless Eratat share price is going to surge big time above it's NET cash of 25c in near future within 2 years... else all warrants expire
82,500,000 warrants (?
subscribe for one new share (?
and 2 business days after receipt of the AIP (as defined below) (?
on the second anniversary of the Completion Date (?
represents a premium of approximately 89% to the closing price of S$0.132 per Share on the Official List of the SGX-ST on 19 June
2013, being the last full market day prior to this Announcement.
Warrants?) will be issued to the Subscriber (or its nominee(s)). Each Warrant will entitle the warrantholder toNew Share?) at the exercise price of S$0.25 (?Exercise Price?), exercisable during the period commencing on and including the date of issue of the Warrants, which shall be the later of 14 business days after the Issue DateCompletion Date?), and expiring at 5.00 p.m. on the date fallingExercise Period?). The Exercise Price of S$0.25 for each Warrant
this is good info to think about, thanks:) wonder how eratat win the runner up of most transparent award from SIAS.. so do they really have that large amount of cash sitting around lol
jcbull ( Date: 16-Dec-2013 08:03) Posted:
Borrowing money at high interests when there is " large cash reserve" means ...stay out. Please read nextinsights article : http://www.nextinsight.net/index.php/story-archive-mainmenu-60/919-2013/7716-eratat-lively-discussion-at-3q2013-results-briefing
Q: You incurred finance cost of Rmb 8.7 million in 3Q2013 on bonds payable of Rmb 102.6 million. Why do you need to raise the Rmb 100.5 million via such an expensive bond issue when you have a large cash reserve (Rmb 584.2 million as at 30 Sep)? In actual fact, we have been exploring various options and searching for the right party to raise money from for the past two years before deciding on SHK. In reality, it will be more pressurising when the expansion is ongoing and the funding is not enough or not raised in time to keep pace with the plan. It will be even tougher to raise money when the financial resources then run low.
We are at the stage of network expansion that requires huge cash outlay. Apparel manufacturing that is 100% outsourced requires upfront trade deposit payment to our suppliers.
We have over 30 suppliers for each season and production order to each supplier may not be sizable. These suppliers produce for top international brands. We pay them deposits upfront in order to secure their services and to get priority treatment.
It is also important to retain sufficient cash reserves in case of unforeseen contingencies caused by external factors that can turn into a drastically challenging economic environment. In recent years, we have seen what severe financial crisis can do.
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Borrowing money at high interests when there is " large cash reserve" means ...stay out. Please read nextinsights article :
http://www.nextinsight.net/index.php/story-archive-mainmenu-60/919-2013/7716-eratat-lively-discussion-at-3q2013-results-briefing Q: You incurred finance cost of Rmb 8.7 million in 3Q2013 on bonds payable of Rmb 102.6 million. Why do you need to raise the Rmb 100.5 million via such an expensive bond issue when you have a large cash reserve (Rmb 584.2 million as at 30 Sep)?
In actual fact, we have been exploring various options and searching for the right party to raise money from for the past two years before deciding on SHK.
In reality, it will be more pressurising when the expansion is ongoing and the funding is not enough or not raised in time to keep pace with the plan. It will be even tougher to raise money when the financial resources then run low.
We are at the stage of network expansion that requires huge cash outlay. Apparel manufacturing that is 100% outsourced requires upfront trade deposit payment to our suppliers.
We have over 30 suppliers for each season and production order to each supplier may not be sizable. These suppliers produce for top international brands. We pay them deposits upfront in order to secure their services and to get priority treatment.
It is also important to retain sufficient cash reserves in case of unforeseen contingencies caused by external factors that can turn into a drastically challenging economic environment. In recent years, we have seen what severe financial crisis can do.
So good to buy?
At current price, the yield is comparable to most reits
so cash rich, but give only 2.5 cents RMB dividend.. high NAV, but price so low? anything wrong with this company that accounts for reason why there's no vesting interest from this counter? since volume has been low
danger ( Date: 15-Dec-2013 10:36) Posted:
| very solid dividend yield for shareholders yearly ... |
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very solid dividend yield for shareholders yearly ...
As a result, the cash and cash equivalents as at 30 September 2013 amounted to RMB584.2 million (FY12Q3: RMB372.9 million), representing about RMB1.23 per share (or S$0.25 per share ).
Currently, the Group is finalizing suitable location(s) for self-owned stores in Shanghai, and about 2-3 stores are targeted to commence operations in first quarter 2014 and follow by a few more during 2014.
