<"IBD ratings for this stock are as good as can be. Two days back the stock priced soared on heavy volume.why this decline now?? I am new to this stock ,please guide good luck to all.">
I have followed Nam Tai for 3 years. I have been both long and short. I used to trade the warrants a couple of years ago also. I have played it more short than long, because the tops are easy to identify, however retracements seem to take longer with Nam Tai, but - when they finally do come - it falls fairly quickly.
The float was only 5.4 million shares back in Jan when it was NTAI on the Nasdaq. This is a razor thin margin business of manufacturing mass-produced parts & assembly for basic electronic telecommunication machines. They own ZERO patents; there is NO intellectual property value with Nam Tai. THE ENTIRE BIZ IS ASSEMBLY OF CHEAP STUFF BY SLAVE LABOR.
Nam Tai moved to the NYSE at the end of Jan and so is relatively new to a lot of people who only deal with NYSE stocks. It has benefitted from the recent CRAZY run of Chinese ISP stocks and anything Chinese.
Now the float is 17.1 million, but the FLOAT is about to be diluted by as much as <61%> with an offering of 6 mill new shares, 3 mill from Koo & Marukami being added to the float, AS WELL AS ANOTHER 1,350,000 shares from insiders added to the float. that 10,350,000 shares added to a float of 17,100,000 for dilution of <61%>
Nam Tai itself has siad that it was planning on the new offering pricing @ about $16. THAT ALONE IS ALL YOU NEED TO KNOW; THE COMPANY ITSELF THINKS THAT IT IS FULLY VALUED AT $16.
However it is at an all-time high, HIT 24.88 2 DAYS AGO. the entire float - ALL 17,100,000 SHARES have traded since the break-out from $11 on July 7, and even institutions are following the Koo & Matukami lead and taking profits. (Ie, anayone with a brain has already sold by now).