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НТЕ Message Board

  • medicalguy461 medicalguy461 Jan 31, 2013 7:40 PM Flag

    Results LOST in translation = lost momentum

    I for one am a very invested in NTE 5000 @ 15 and still remain bullish. However, after listening to the conference call, I was totally LOST due not to content but translation. We, PR group, need to prep anyone responsible with both the delivery and content. No disrespect but had I not done my due diligence I would have run for the door after the CC. I believe we lost most of the groundswell of blowout numbers due to the misunderstanding of the gross profit margins going forward. There was a audible sound of the life being suck from the positive momentum of message.

    Sentiment: Buy

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    • Can anything be done to correct this translation problem?

      Sentiment: Strong Buy

    • I agree. Too many folks take Mr. Koo's admonitions at face value.

      Go back and read the 2011 annual report. The cautionary language is almost verbatim and yet NTE doubled in 2012. I will gladly take another double this year and the year after...

    • I think when Mr. Koo talk about future gross margin there no misunderstanding from translation. He say consider gross margin 6% to 7% reasonable. Mention there are some other income items in this and last few quarters like currency exchange gain which help boost margins.

      Maybe he being conservative by giving 6% to 7% gross margin guidance but I don't think there were misunderstanding because of his english. Some part such as when he talk about technology or production process is little confusing. However I think it because he is not engineer background so not familiar with many technology terms.

      • 1 Reply to chan_lei_ha
      • The foreign exchange gain was $1 million. That's out of gross profit of $49 million. That's pretty negligible -- 2 cents per share was from foreign exchange gain.

        I agree that the issue was him being conservative, not translation issues. However, it still might be helpful if they have a translator around just in case.

        Sentiment: Strong Buy