Eratat Lifestyle (FO8.SG) +7.7% at $0.21 on above-average volume, extending 11.4% gain since start of September, as China-based fashion apparel maker one of many undervalued small caps being sniffed out by investors, says Dow Jones.

Despite run-up, shares still below book value of around $0.27/share. Newsflow on company has been thin since release of results in July for fiscal 1Q11. But if September-quarter results, likely due next month, impress, rally expected to continue.

"Eratat's shift to casual fashion wear and away from sportswear has increased its relevance to the Chinese consumer. In addition, Eratat has extensive reach to the mass market in the second- and third-tier cities, which are experiencing high growth due to infrastructure development," says Sias Research analyst Liu Jinshu.

Resistance at year-to-date high of $0.24 set in January.