Eratat Lifestyle

[CY09]

I remember reading somewhere that mgmt. states they have a policy which is to distribute dividends at around 3- 5% to the current share price. Was it last yr they said this.

Secondly, the mgmt. mentions that they intend to deploy the cash for med to long term and hence it is possible that Eratat could be on some "big scale project" that will require them to use up 23 cents per share to the extent that they have to raise more capital. I have attended S-chip AGM this year and when quizzed on their cash hoard they have always given similar to answers to Eratat's: "They have some money-making project which will use their funds" or "We have to strike a balance between returns to shareholders and business expansion."

Which makes me wonder: are there so many big projects in China that are better than buying back their own shares which are equal to or less than 50% of their stated NAV ( if you believe the figures). Its either there are many frauds with large cash hoards or China is such a greater hinterland where you can expect 100% returns on top of capital in a short period of time