My first investment in China sport sector was through China Hongxing which disappoint me very much. Obviously, after Olympic, there is excess capacity and cut throat competition which squeeze every player. In a very competitive environment, it is better to buy the leader than those playing catch up.
Recently, Eratat Lifestyle has been making headline. Being mentioned by media and analyst, I think they are trying to drum up the interest on the stock. Interestingly the company claimed they are out of sport shoe sector and into the lifestyle sector which allow them leeway to earn a meaningful profit. We shall see what number the company can produce in coming quarter annoucement before making further judgement.
The interesting fact about the stock is PE valuation is super low. Less than 5 based on previous quarters of earning and management hinting the margin is on the up trend. Valuation is cheap but whether the future is substantially changed is yet to see.
Sunday, 26 September 2010
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2 comments:
Hello friend. I chanced upon your blog while searching for SG stock information. I just want to let you know you have a great blog going on out here and I hope you keep blogging. Perhaps you could share on some of the stocks that you are targetting with your followers. Do you think the STI is poised to go further up soon?
http://sgsharemarket.com/home/2010/09/straits-times-index
There are a couple of stocks that I follow like Etika, Eratat, Soilbuild, Wilmar. List is too long to publish, especially sometime it is really about whether it is attractive to buy at that level.
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