nobody is expecting good numbers but some people seem to be afraid of guidance which I expect to be really ugly given the outlook Apple offered. Nam Tai clearly will feel the pain here. Would think of revenue guidance around equal to the dismal Q1 which would trigger a huge sell-off.
The earnings information was given at the last Q conference call. Down, but to exceed Q1 of 2012. So far I se no surprise. Maybe some folks just started following this. If management is true to form we will see confirmation of previous guidance regarding 2nd half 2012. If not, the current price is appropriate.
Insiders are telling relatives and Goldman City. We are dead money and will do a "BIDU". Goldman City is front-running their inside info. The selling is accelerating as the insider info spreads. LOL!
earnings: - . 08/share
sales : down 34%
gross profit margin : 3%
share price : $6/share
I remember reading The Intelligent Investor by Benjamin Graham for the first time back in the early 90's. He said that the key to successful investing was finding stocks that were worth a dollar but were selling for 50 cents. Back then it seemed ludicrous to think such stocks existed. After all, the big thing was Efficient Market Theory (EMT) which postulated that all stocks were fairly priced at any point in time.
I thought at the time that what held true for Graham at the time (1940's) was no longer true in the current information age.
I think that NTE offers a wonderful opportunity to test Graham vs. EMT...
Is NTE fairly valued at around $11-12/share ?
Or, with $4-5/share in cash,no debt, increasing sales and earnings,a 5% dividend, and land that may be worth more than the entire company itself, does NTE represent the classic Graham scenario of buying a one dollar stock for 50 cents ?
Time will tell...
I'm happy to reinvest the 5% dividend until it all comes to fruition. I've been long since 2008 and watched this thing trade for less than the cash on their balance sheet. Who knows why it's falling, but even if the pps falls, I'm not going anywhere
Sentiment: Strong Buy