Last quarter Nam Tai did 1.6 - 1.7M iphone LCMs (less than half of a full month's production capacity) and had mediocre ipad revenue. Even in a bad quarter, 3 months long, they should be able to do better than less than half of one month of an ok quarter. They made 54 cents last quarter, which annualized is $2.16, or a PE of less than 6 with a sizeable dividend, and are likely to do better in future quarters.
There are also new opportunities coming. There's a contract under negotiation. There's the likelihood of a new iphone, updated ipad, or getting in on the retina ipad mini. Then there's Sony who sold 35M smartphones last year, moving into 3rd place in the rankings from a previous 6th place, and plans to sell 50M smartphones this year. The word is that Sony's new flagship phone, the xperia Z (along with its sister-phone the xperia ZL) will arrive March 1 in some locations, and so far every review I've seen has been great. It will use displays from Japan Display, so there's a good chance it will go through Nam Tai. With the iphone and ipad, there are 3 different suppliers for displays per product, while with Sony there's just Japan Display because Japan Display is a joint partnership between Sony, Toshiba, and Hitachi, so Sony can give Nam Tai as much revenue as Apple can. It doesn't seem like Wall Street understands that.
This "drop from 65M iphones to half that" is ridiculous. No one anywhere expected 65M iphones in the first quarter. Also, analyst Brian White was talking about component production decreases a month ago, and that iphone sales would hit 30M or so, so this is not new news. The first quarter is usually the weakest quarter in electronics manufacturing because it's after Christmas, and there's a short month, and in China you have some holidays like Chinese New Year. Also, it's a quarter when Apple doesn't come out with new products.
The yen has plunged, making new lows, while the won has soared, making new highs. That means that Sharp and Japan Display products are cheaper to produce making the companies stronger, while Samsung Display and LG Display products are more expensive.
Please stop replying to the idiots like muddy rivers. Even they don't believe that Nam Tai is a scam, it's just a pathetic tactic to move the price lower.
I bought more yesterday and will buy still more if it continues dropping.
Jaret has this call nailed. We were just given free money. Could be up 50% post earnings.
The "street" doesn't expect anything - no coverage, doubt many people know the details. Apple supplier = dump the stock - people don't know the ramp only started in 3Q. Even a putrid 1Q could have revenues near 3Q, possibly higher, potentially slightly lower. If 1Q is $350 million and is the low for the year, isn't NTE going a lot higher.
Am also adding today.