The 3rd QRT earnings were a big surprise, I was targeting a profit margin around 4-5% range, and NTE came out with 9%. This was a very, very nice surprise.
If they can maintain this range, and based on the full 4th QRT production schedule, we should see some big numbers come January 28th.
There are three things holding NTE stock back;
1.NTE is Taiwan based company, at this time Chinese companies are being bashed for the ongoing dispute between our SEC and the Chinese government regarding financial disclosures. The Chinese companies that were listed due to reverse mergers all got what they deserved, being de-listed on either NYSE or NASDAQ. NTE has been long outstanding publicly traded company for many years that has followed the US securities laws and have always been totally transparent. This will blow over as more investors realize that NTE has and will always comply with US securities law and disclosures.
2.For NTE is keep climbing, the market needs to see at least 3 quarters of strong sales gains and increasing profit levels. This will be the 3rd quarter of such gains.
3.The fiscal cliff. Yes, this is a big deal. If an agreement can be reached by the clowns of both parties, you will see a very, very strong year for NTE and the market in general.