Compared to the average rates for LCDMs and the standard scrap rates in the industry, the margins for NTE does not seem believable. This means either: 1. NTE has technology to reduce scrap rates dramatically which no other company has, 2. they were able to source raw materials at much lower than market prices, or 3. they at the very least are padding their books.
This issue deamnds further investigation. We advise on investors to proceed with caution on NTE.
you are wasting your time on this one - as some people already pointed out, the company has been around in the EMS space for a very long time and the business had some good times and some bad times through this. Currently the company enjoys the huge tailwinds of some Apple sub-contracts and investors were rewarded greatly during the past months.
NTE is also paying a sizeable dividend, so I don't think there's anything wrong here - actually I like very much what the management is doing and therefore considering this company one of the best stocks in the market these days.
While I am somewhat cautious on the near term outlook as Apple has recently cut order volumes for the March quarter there's no doubt that the current stock price is well deserved.
What you're saying doesn't even make sense. Their margins are not even very impressive. They've also been doing LCMs for a long time and have been in the EMS business for more than 3 decades. Do you think they wouldn't account for yield rates when quoting a price to customers?
Sentiment: Strong Buy