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Nam Tai Electronics, Inc. Message Board

  • financebug2000 financebug2000 May 10, 2013 4:28 PM Flag

    Wall Street

    Wall Street hates this stock. Otherwise why are most NYSE stocks trading at 15 times earnings while Nam Tai trades at 5 times Trailing earnings.

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    • NTE is an EMS company, they almost never trade at a 15 P/E unless tremendous growth is expected in the future. Most EMS trade at a 8-11 P/E. Take a look at JBL and SANM.

      NTE is trading at a P/E of 5 and around book value due to concerns of future business. While today's news is good it still sounds like they will eventually lose their JDI contract because JDI wants a lower price then NTE can provide. They just bought themselves more time to find new customers to replace the JDI contract.

    • Even today Motley Fool stated first qtr. earnings were disappointing; compared to what certainly not the first qtr. of 2012.

      Frankly, I think Mr. Koo gives too conservative statements to Wall Street media and they use it to keep the share price down. There has to be a better way to keep shareholders appraised.

      • 1 Reply to financebug2000
      • what do you want ? the stock has had a great Apple related run recently - long term shareholders more than doubled their money within a few months. But with Apple now losing the smartphone wars big time Nam Tai is the first to be eliminated from the supply chain. Given the tons of bad news from Apple and related suppliers it was quite clear that the outlook for Nam Tai would be very weak so this one was a great short going into earnings.

        With the future focus of the company shifting to developing its campus property the risk profile has changed dramatically as no one knows how much money and time it will take to earn some returns and if this will ever happen. The dividend will be eliminated in 2014 to save moeny for the property development.

        with rapidly reduced EMS operations and huge cash needs for campus development the company won't be able to produce positive earnings for some time going forward so there won't be any incentive for investors to own the stock.

 
NTE
7.09+0.13(+1.87%)Apr 17 4:03 PMEDT

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