I don't think there will be much movement upward until they announce the first sales of LCD TV/monitors. Once they do, it will move up quickly as people realize the potential for growth in this company. As Warren Buffet says, he looks for two kinds of companies. 1) A company that has created a unique item, that no one else can make. 2) A company that has good management, but fallen on hard times, that has a plan to remake itself into a growth company. GAI is this kind of company!
i agree with you... when this company even breathes any success of the transition into its new product line, it will be considered a "growth" company, and the stock should run for years! It has stopped the revenue bleeding, as stated with the last Q3 report, now, it has nowhere to go but up.
I think there are three major points that makes this company the most exciting play for the next 5 years. 1) The stock is CHEAP, trading below book! If it traded where its cousin Nam Tai would be trading(4.5 times book), it would be at $40 a share! 2) Its manufacturing facilities(two million square feet) are four times the size of Nam Tai's, thus has endless capabilities of growing within with optimal margined product lines. look what NTE has done over the years. Its stock has gone from 8 to 100, then split 3 for 1. They(nte) currently only have 500k square feet and are aggressively trying to expand to handle more output. 3) With GAIs "conquering" the plasma hdtv flatscreen line, it would prove to investors that they could make anything AND thus have the capability to roll with whatever new technological advances that come out. Also they could tackle less technical lines such as calculators(like NTE) or scales(like BNSO), and certainly plastic injection molds(like DSWL).
This company is as large(manufacturing wise) as its other OEM China brethren, nte, bnso, and dswl put together and yet trades below book. CHEAP!! CHEAP!! GROWTH!! GROWTH!! OPTIMAL MARGINS!! STRONG BUY UP TO $20 A SHARE WITH A JAN. 2008 $150 PRICE TAG!!