Earnings were higher than forecast as were sales. Profit margin also increased. It's going to be several months yet before the company really gets cooking. But they are making money and expect things to really pick up by 3rd quarter of next year. Net earnings were roughly what they were a year ago, not something most companies can say.
For a company trading barely above the cash they have in the bank, that ain't bad. Nam Tai is still one of the cheapest stocks trading. It's one of the few companies that's below where it was on January 1st.
What I like is management honest approach with shareholders, they tell you things as they are and not trying to twist and bent, actually they are very conservative which is a good thing. Also I believe they will reinstate the Dividend next year, could it be for Q1-2010?
Earnings on significant sales decline shows that they have cost under control. with cash on hand and equity (very little debt) they are well positioned. To rally take off however they will need to get sales back on a positve trend . Once that happens look for a doubling in this stock. (We could be any where from 2 quarters to two years out. - Time and execution will tell the story. -Long term strong buy.