It's amazing. Nam Tai's market cap is $600 million, which is large enough to put it into the S&P 600 small cap average if it was a US based company. Yet *no* brokerage firm provides official earnings estimates on Nam Tai. But this is what is really interesting. 10 organizations do provide buy, sell, hold recommendations on Nam Tai. Back in July when the stock was at $6, 4 analysts had a sell recommendation on Nam Tai and only 2 had a buy. So mostly they were just dead wrong. Now fast forward to November. Must have changed a lot right? Not by much. 4 analysts now have a buy rating on the stock, but 4 still have a 'sell'. Ok, so it must be that they are just down on tech in general right? But for Hewlett Packard, who have come out and said they are having real problems, 10 analysts have a buy rating and 5 have a sell rating. So for a company that is telling the market that sales are going to explode, it's just a wash. But for a company that is not growing and having a really tough time, analysts are recommending the stock 2 to 1. Is Wall Street slow or what?
Eventually some analysts will be forced to take a hard look at Nam Tai. When those buy recommendations start coming in, then we may finally see Wall Street jump on the bandwagon. But that may not happen until Nam Tai is already at $20 and has a market cap of $1 billion. Unbelievable sometimes, ain't it?
HI: I you noticed in the conference call. There were a few small companies following NTE, The 1st one in the question & answer session (Bill Horn of First Angel Capital, The next one was Thomas Kahn of Kahn Brothers, then (George Berman- JP Turner & company). The only recognizable name of a large corporation for me was Wells Fargo Advisor, Joe Pratt)
Maybe some of these analyst have information that we could obtain by inquiring.
It is a good sign when Wells Fargo is represented at the Conference Call. They are at least interested and sent someone to check it out. Whether they will start following NTE is not known but it is an indication some large brokerages are watching.
Having coverage by the big brokerage house analysts is a two edged sword. They will generate more volume with their coverage but: They do not allocate much time or study to small caps so they are often either wrong or acting on behalf of some large clients to manipulate the short term price. I dont believe the major firms analysts will risk coverage here until the company produces audited quarterly statements.
I don't know where you see even 1 analyst covering Nam Tai -- if there are any, I'm not aware of them. I don't see a single earnings estimate. If you do see any analysts they are probably either automated or old leftover ones from years ago.
I think we'll see 1 or 2 start covering Nam Tai soon. The word is obviously getting out, as is evident from the volume since August and the huge numbers posted a few days ago.
If anything, the lack of analysts coverage gives us another 2-3 months to buy more shares before this quarters results are released. I bought NTE a few years ago when it was $5.50, and they prettty much doubled the dividend so I'm definitely taking advantage of this opportunity.