I agree, this is very interesting move. I kind of expected something like this. Stock hitting all time lows as this type of project takes time. The stock market is not patience. This offer is just basically another stock buyback offer that replaces the one that expired last fall. NTP is getting these shares very cheap.
I wonder if the big holders (Kahn Brothers) will bite on it. I expect not. It the little fish here that usually take the bait.
Once the permits get issued, things will brighten up. I am in for 6K shares and will hold most likely for 2 more years. Ugh.
I was thinking about that also, I currently holding until we see some more solid information / plans from the company before I add anymore.
I think we will test the lows again soon and may dip in.
I am sure I will return a profit on what I currently own but it will take longer than I expected.
Don't worry about the particulars, I am sure we will see another buyback approved as they had $40 million approved in the first round and only spent appox $17 million.
Guys, the share repurchase program ended on November 28th. This is what was approved by the Board and that unless they approve a new additional buyback program. That's it. Rules are Rules.
I expect a new program to be announced in 1st quarter 2015, how can anyone not be tempted at these price levels.
With that said, someone is buying the shares. Stock is up 3.7% so far today (12/2/14)
Mr. Koo is getting old, my thinking are that in 3 - 5 years he will be ready to retire. Mr. Koo does not want to manage a company that makes money only on rental income.
Restructuring the company to take advantage of the great assets (land holdings in prime real estate area) to the strategy that maximizes the financial returns to not only Him but to Mr. Kellogg and also the many shareholders is the end goal.
Every company leader eventually sells all his shares then retires.
If they have $36 million left on the buyback, then at say $7.10 / share, they would buy back 5,070,422 shares. Now if this was over 5 months to November end, this would be 1,014,084 shares per month. Or perhaps 253,521 shares per week. Daily volume is averaging 222,000 shares.
Where did you read this announcement? If true, something interesting is happening that we do not know. You are correct, if they feel they can buy back shares say at $6.50 that is roughly 6 million shares then they feel they do not need the cash for the development but then, if the stock price keeps dropping they could be vulnerable to a buyout from outside sources. If they do the buyback, this reduces the float to from 33 million to 27 million and provides support for a higher stock price.
Another thought, is that the development of the property will be completed sooner than the 3 years stated to complete the first phase (as mentioned in the update announcement on the website), and that opening could be in less than 2 years.
As for going private, unless the stock price raises to a much higher price, say $10-$13 range, it could be in play and the directors may also conduct a buyout.
Just a thought
What really happened with NTE, which I just picked up from the Japan Display IPO, was that Japan Display (JD) was NTE's biggest customer for LCD screens for Apple IPhone's, NTE announced this very large supply contract to JD, but behind the scenes, secretly, JD was developing the in-house capability to do what NTE does. JD then demanded from NTE a ridiculous large price reduction or else they would lose all the business. This demand came out of nowhere as a total surprise to NTE that JD had developed the capability to bring this operation in-house. The two companies relationship goes back a long way and they had very strong ties.
I think the reason JD decided to bring this work in-house was the need to improve sales and profitability as the company will then be a publicly traded company again.
Being that NTE majority of sales came from JD, when they lost the supply contract, they had no other option but to transition to another business plan, quickly. They were not a supplier to Samsung or any other cell phone manufacturer most do everything in-house or already have key partner suppliers.
In the long run, NTE will be better off, but it will be a boring next 3 + years minimum. So, take your money and invest in other stocks and come back in3 years to check up.
What I am very glad to see is that Japan Display's IPO was a disaster and the stock is down over 20% since the IPO. I hope they die.
I read it, and can only say one word, DEPRESSING
Looks like NTE has become a long term investment of at least 4 years. The stock can drop much lower based on the many unknowns when converting from a EMS player to a real estate owner and developer.
Well, I guess that could be a possibility, as NTE leadership (Mr. Koo) put his foot totally in his mouth on the conference calls last year by projecting rosy sales predictions based on their supply contracts and then, whamo, it all goes away with the contract loss, just as the real high volume was to hit. I am sure management does not want to go through that mess again with lawsuits and just plain bad PR about the company. But then, maybe their answer to this is just to stop having conference calls and posts the results. They really do not have to have conference calls unless they want to generate investor interests.
I would be disappointed if they did go private, I like the company and the management's thinking, they are always trying to create substantial value for shareholders. I think the Real Estate deal is going to be a big within 2 years. If we get into the mid 4's or low 5"s I may start buying again for the long term
World's Biggest Tablet, Smartphone Display Maker and Key Apple Supplier to List in March
TOKYO: Japan Display Inc., the world's biggest maker of displays for smartphones and a key Apple Inc. AAPL -0.08% supplier, is aiming to raise up to $4 billion in what would be Asia's biggest initial public offering so far this year.
The move, if successful, would represent a rare turnaround for Japan's manufacturing industry, which has been battered by the rise of Chinese and South Korean rivals.
The company has thrived by taking advantage of its manufacturing scale and focusing its resources on small and medium-size displays, despite earlier criticism that Tokyo was throwing good money after bad when it helped set up the firm in 2012.
Japan Display was formed from the loss-making liquid crystal display units of Hitachi Ltd., Toshiba Corp. and Sony Corp, with a Japanese government-backed fund pouring $2 billion into the combined entity.
In addition to making displays for Apple's iPhone 5s and iPhone 5C, Japan Display's client list includes other top U.S. and Asian smartphone makers, according to people in the industry.
The display maker on Friday gave the first concrete numbers on its lucrative business supplying Apple, saying that the U.S. company accounts for nearly a third of its revenue.
Japan Display grabbed a top share of 17% in the global market for small and medium-size LCD panels by value of goods shipped last year, according to estimates by research firm NPD DisplaySearch.
Japan Display said Friday it would offer up to 158 million new shares in the IPO. That could raise ¥170 billion or about $1.7 billion. The company intends to use the money to boost its production capacity and to develop new technologies. In addition, the current shareholders will unload part of their stakes, bringing the total IPO value to an estimated $4 billion.
IF YOU WANT TO INVEST IN THE DISPLAY SECTOR, THIS COULD BE THE BEST WAY TO DO IT.
Well, NTE could drop to the $3-$4 range again as there will be really no positive news coming to bid this stock up. Remember it takes time to transition from a major electronics manufacturer to a 100% restate developer or land manager type company. In the next few quarterly reports, we may hear about permit approvals, start of construction or maybe given a target timeline going out 2-3 years, but it's hard to get a handle on this one. I expect bumps in the road.
In the end, investors will make $$$$, Koo & Kellogg will not let you down, but the return could be 3 -4 years out. You could miss out on many other good investments that will appear after this current market correction, which I think is just starting.
Maybe replacement supplier is getting their act together and contract extensions are about to end?
I look at low $6 range as a entry point
It has been known for dzeemen to go off and become wacko. This happens daily. But today, his comments show a pattern of total nonsense and fictional thoughts.
Police have been notified and they will take dzeemen to the local mental hospital for evaluation and treatment for
lack of integrity, knowledge, and unethical actions.
MAY HE REST IN PEACE, GOODBY DZEEMEN
I am sure that JD had a new supplier to replace NTE, no company would ever announce a end of a contract without a suitable replacement. The only reason for extended contracts (I think) is that the new company is having a hard time ramping up volumes and meeting the quality targets required.
Maybe something good could happen like, JD saying they are going back to NTE as the other company just cannot meet our requirements. (long shot)
Thanks for the clarification, somehow I missed these details, let's stay tuned and see what happens.
I think what we may be seeing here going forward with NTE, is a company with 2 major ongoing activities. One, stay in the LCD Module manufacturing sector providing screens to Apple I-Phones (high end) hopefully while developing the second activity, the real estate development.
This is still a risky investment. The company has no real clear long strategy that has been updated, in fact, they don't even discuss opportunities in the electronics sector, All we know right now is the investment in the real-estate project. There is no additional information being announced.
I usually invest in companies that spell out their vision and steps to succeed. But, with that said, there is something about Nam Tai that keeps me attracted to this stock
I would be interested in knowing how you heard this about the new supplier having problems. Usually this is not privilege information.
Unless you made this assumption due to the contract extension.
Let me be a littler clearer in my previous message. You are correct, sales in each of the quarters of 2013 was higher than comparable quarters of 2012. This was all due to the new supply contract with JD that were ramping up.
Then in the early summer, NTE made the shocking announcement that they lost the JD supply contract due to cost competitiveness. NTE on earlier conference calls (spring 2012) indicated that once they get up to full speed, sales were targeted to ramp up to over $945 million per quarter by the 3rd quarter 2013. As they were winding down from the lost of business, sales were still better than any quarter in 2012, which by the way, was very low.
Many look at stock investments as to what the future looks like 6-12 months out. NTER right now looks cloudy as they totally change their business model. It is very hard to get any information as they have stopped having earnings conference calls. Personally they made a good decision, it was very hard to understand Mr. Koo's English translation.
Believe me, I am just as upset as every shareowner is with this collapse. My only saving thoughts are that Director Kellogg and CEO Koo own a lot of stock and have always focus on long term wins and most of all, NTE try's to always maintain paying a dividend.
Unfortunately it has all to do with future projected sales. Prospects look very grim as NTE's supply contract with Japan Display was cancelled due to price competitiveness. Sales are slowly decreasing as volume shifts to the new supplier. The only real reason for the big increase in NTE's stock price a year ago was due to the big supply agreement they had with Japan Display for Apple I-Phones. Sales were climbing quarter to quarter showing proof, now it is the opposite.
There is no doubt that NTE has the expertise and possibly the leadership in the industry, but if the competition can do the same thing cheaper, then NTE loses out.
NTE needs a few more new customers to expand outside of the small circle of supplier to Apple. Not sure if the supply chain in the Android world has any opportunities.
The stock in holding in a very tight range of $6.85 -$8.10 until something spectacular is announced. We could be in a holding pattern for a few years.
I hope the work requirements are not eliminated, if so, then there would be no incentive for dead beats to leave the welfare program.
But then, this is what the Democratic party is all about. Buying / Bribing votes for their party.