Wednesday, April 6, 2011

Eratat Lifestyle Halted - Rights or Placement?

I really wanted to write about this yesterday before the halt was announced! Anyway, I wanted to say that the stock move from 19 cents to 22.5 cents could be the result of its lack of free float - 400 million plus shares at last count. Moreover, there has been some good publicity, which is enough to move the shares up due to thin trading. And I believe that the stock will issue a cash call again, or a placement at least,  after the earlier one failed to get clearance from SGX due to the size of the discount to average trading price.  A cash call is very likely (privatization a bit remote), and is definitely preferred to announcements pertaining to its financial statements.

2 comments:

  1. I concur with you on this - most likely it is a cash call!

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  2. Same here, vote cash call, probably private placement.

    Worst case an irregularity of accounts.

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