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Nam Tai Electronics, Inc. Message Board

  • christian_ruth_mason christian_ruth_mason Dec 5, 2012 12:55 AM Flag

    Is NTE affected by the SEC laws against China?

    Is that the reason for the selloff today? I just read a lot of Chinese stocks may eventually be delisted from US stock exchanges since they can't comply with SEC standards to trade on US exchanges. The SEC is also suing the Big 4 since they are not providing enough financial information of Chinese companies they are auditing.

    It seems the Chinese government does not allow companies in China to share a lot of accounting and financial information with government enitities in other countries. This includes the SEC. So Chinese companies can't give out financial information required by the SEC and the SEC won't let companies they do not provide enough financial statements to trade in the US.

    This can lead to many Chinese companies which trade in the US to be delisted from US exchanges as a result. Is NTE one of them?

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    • Most of the Chinese stocks that have been problems have been reverse mergers -- they got listed on the stock market without the normal review process, and instead got listed by merging with a shell company. Nam Tai was listed on the NASDAQ in 1988, and on the NYSE in 2003. It has paid large dividends for much of its existence. It has large, well-known customers. It's invested in by large, well-known companies like Morgan Stanley and Kahn Brothers. Peter Kellogg is on the board of directors (#546 on the Forbes billionaire list, #188 in the US.) Nam Tai is in compliance with SEC regulations and files quarterly and annual reports every year. Nam Tai's annual shareholders meeting has been in San Francisco many years.

      In other words, it's as trustworthy, or more trustworthy, than many of the US-based companies you would consider investing in.

      Sentiment: Strong Buy

      • 2 Replies to jaretwilson
      • I'm not asking if NTE is cooking their books. I'm asking about the Chinese laws conflicting with SEC laws that may cause some Chinese stocks to become delisted since the SEC is now taking action.

        Google "Will SEC Crossfire Affect Chinese Companies Trading in the U.S.?" for an article about this.

        It says this affects some very big Chinese companies like bidu, ntes, sina and sohu. All of them have market caps in the billions. It says that the stocks may be delisted from US because laws in China prevent them from sharing enough financial information to satisfy SEC requirements and the SEC is angry about this.

        I was wondering if this applies to NTE as well.

      • Nice summary on NTE, many of these reverse mergers stocks I think have already been delisted.

        My guess is that NTE will likley waver in a range of $14.50 and $18.00 until January, then slowly raise to $21 just before the 4th quarter results are announced on January 28th, 2013. The sales / earnings should be a record setting quarter. After that, all bets are off where it will raise to before the 1st qrt 2013 earnings announcement in April.

        Sentiment: Strong Buy

    • NTE has been listed on U.,S. exchanges for many years. First on the Nasdaq, then later moved to the big board. Any company, U.S or foreign subject to de-listing receives a published warning and a period in which it may correct the fault. No such warning exists for NTE. It would, however be beneficial to have their quarterly results audited. That would inspire more confidence and is pretty standard for U.S. listed companies.

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

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