The NTE story is still valid, the selling is all about closing out yearly performance for funds.
Wish I had more funds to buy, I would
NTE is on track to hit record sales and profits this fourth quarter. Last summer, one prominent analyst called for 45 million unit sales for the 4th quarter, last week, he reduced his estimates to 40 million, stating he saw weakness in the supply chain???. Apple has made it clear that they have targeted a production goal of 18 million units per month or 50 million units per quarter. Heck, 40 million units in a quarter is still a record for Apple.
NTE is contracted to make up to 4.0 million displays per month. NTE is one of three suppliers of displays to the I Phone. According to NTE Chairman Koo’s last comments during the conference call, NTE in the 4th quarter will be producing at 84% of the contracted maximum volume of 4.0 million capacity level. This is a far higher level than last quarter as I Phone production was just started and we only had two months of low production for sales. Mow we are running at a very high rate for the 4th quarter.
NTE will not be affected by any reduced volumes at Apple in I Phone retail sales, NTE is just getting started and have been rewarded by their customer for achieving excellent quality performance, this is very important for any consumer electronics supplier. If anything, NTE production could be going higher.
I am sticking with my estimates for the 4th quarter. I do expect an announcement by NTE about some new supply contract that may have been signed, maybe with current customers, or better yet, with a new Smartphone manufacturer.
2013 will be a great year, with or without the fiscal cliff debacle being discussed by the clowns in Washington DC.
Good luck to all.