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Nam Tai Electronics, Inc. Message Board

  • bobforaps bobforaps Nov 19, 2012 11:27 AM Flag

    This is absurd

    That you can buy NTE at these prices given the already rising number of confirmations as to the future.
    First, they are acquiring additional manufacturing capacity and space. Second, the June quarterly report and conference call made it clear something big was going to effect both net income and revenues, and that it started in June. The 2nd quarter numbers caused an upward jolt in the pps. Now
    the 3rd quarter blew away all projections and confirmed that managements prior guidance might have been to low. Now we are hearing various anticedent signs that they have a big fish on the line, still unnamed but everyone knows it is Apple. And better yet, the effect on performance is just in the early stages but already has quarterly increases Q over Q of huge proportions. These are not speculative gains, they have already happened and are just starting. You tell me how this makes sense that you can still buy this in the low teens. I have been all in and have no more free cash to invest.

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    • Maybe it's the fact that NTE is a chinese company and isn't followed by any major analyst currently. Some investors are always weary of Chinese companies even though NTE has been around since 1975 and have been trading on the NYSE since 2003.

      All the forward looking statements from the latest earnings PR and conference call indicate that going forward, revenue in Q4 and 2013 is going to continue to ramp up. Management made it pretty clear with statements like:

      "The Company's management anticipates its customer orders would grow steadily and the existing production capacity would be expected to reach full capacity before the end of 2013, if the increases in demand for the existing production of LCMs for smartphones and tablets as well as the other new LCM product business continue to hold"

      "In terms of our outlook over the near-term, we remain optimistic about the opportunities for additional growth. We believe that new programs we have won and the forecast mix of our end market customer demand should enable us to deliver improving sequential revenue growth for the remainder of 2012. As we have discussed, ramping revenues from these programs has really begun, however we believe the revenue growth in 2013 from these programs will likely be more significant. Many of these programs are more complex than the previous LCM production ramps which help explain some of the start-up challenges and associated cost as (we moved the whole) production."

      Plus the company is puting money where their mouth is by more doubling the dividend for 2013 and taking a stock bonus instead of a $5 million cash bonus.

      I guess maybe we can consider it gift to still be able to add some more shares at the current levels.

    • I'm not sure I would call NTE's price action "absurd". Make no mistake, I'm a big fan and NTE is my #1 position at this point. I'm not "all in" but I'm close to it.

      In my opinion, NTE is trading at too low a price at this point. I think that maybe 99/100 investors have never heard of NTE. As time progresses, more of them will, perhaps NTE will have another day of being the #1 gainer on NYSE. It should also start showing up on dividend screens. It could get exposure by being profiled by an analyst(s). The shareholder relations firm also really hasn't ramped up yet. I am anxious to see their video.

      I think this next quarterly report is where we will start to really see the stock move. They will have a 2 full quarters of iPad panel production and the 1st FULL quarter of iPhone panel production.

      Also, remember that AAPL has taken a beaten in the market. I think AAPL is probably undervalued at this point. If AAPL takes a big move up, so will NTE.

      If we get some more news on their Shenzen factory situation, we'll move higher yet.

      If NTE can make a little under $1/share in this upcoming quarter, we'll be moving higher, much higher. If NTE can keep the pace up, or even accelerate it, a stock earning $3.50 or $4.25 share is NOT going to be trading for $15/share, nor will it trade for $20/share. I would think it would move into the 30's.

      We'll see!

      Sentiment: Strong Buy

      • 1 Reply to dtejd1997
      • I have called it absurd. I dont think it can, or will have to double net income and revenues Q/Q going forward. It has already established explosive growth in both net and revenues with a current forward P/E of around 7. That alone is absurd for a growth situation that is reflecting both revenues and net income. Imagine the PEG. There is a point at which expansion costs will mute the growth margins but even if it only meets Q2's net of .54 you have a $20.00 stock on a very conservative basis.

 
NTE
7.020.00(0.00%)Apr 21 4:00 PMEDT

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