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НТЕ Message Board

  • chan_lei_ha chan_lei_ha Jan 28, 2013 5:07 PM Flag

    This why I say wait after earnings for buy shares

    The good news orders would not drop off completely in Q1 because of Apple order cuts and NTE still believe would use all production capacity later in second half year. Bad news is margins will come down next quarters and maybe more when orders increases.

    Earning for Q4 in 2012 is good at expect. Now EPS around $1.48 for last 12 month and give stock current P/E of 8.6. This in line with other EMS which usual trade between 7-10 P/E. Think company can earn around $2 per share for 2013 with current estimate. So forward P/E around 6. This also inline with other EMS which trade Forward P/E of 5-7.

    However lot high growth investors may sell NTE now. So stock may still have some room fall. But don't think it will go below $10 now or at least not below $10 for very long. Now think it smart for wait few day for high growth investors exit, see bottom confirm, and then it good for start buy or add some shares if long term investors.

    It also good news company say try for diverse customer base more. As say before NTE to dependant on two main customers for revenue with Sharp and JDC. And since appear both customer sell to Apple, it mean there only one real end buyer. With more diverse customer base there be less order fluctuation in future.

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