Actually I shorted the stock on the Apple related and therefore undeserved recovery (this isn't an Apple related stock anymore as the relation will be terminated soon).
The company is talking of going essentially out of business after projecting quarterly revenues of $900 mln later this year just three months ago.
Like it is the case with Cirrus Logic the almost sole focus on Apple is threatening to kill the company now.
Remember also it has been just pure luck that the company recently got its campus real estate upgraded to a very valuable asset and while everyone would have thought Nam Tai to outright sell the land rights they are now focusing on re-develop the property by themselves, an area where they have zero expertise so far. Besides that the re-development of the site will take several years with the company projecting that their money might just be enough to finish phase I of the current development plan.
so last year's investors bought an EMS provider directly connected to Apple's success but now they wake up and find an emerging real estate developer in their account. I don't know what you are doing when getting a wrong delivery - for my part I would like to have my money back.
which is of course as unwarranted as the Nam Tai recovery after the company disclosed they are planning to go essentially out of business at the end of September and put its focus on re-developing its campus.
it has been up for some days now as pumper mastermind corstrat is placing just another multi-day piece of worthless pumping on seekingalpha
listen to the replay of the call - it's quite clear that the company won't pay any dividend beyond 2013 as there simpy will no cash flows to support any payouts. Instead they will use the money to fund the re-development of their real estate assets. This will take years and won't make investors happy short term. If you are in for the dividend don't forget to sell the stock after the final 2013 payout arrived at your account.
nothing is fishy - they're just victim to Apple's current less than mediocre performance - the real estate currently is still used as factory and administration of the company so it needs to be redeveloped first.
while you might be fine with your company essentially exiting its current core business and instead jump into a completely different industry where they have zero expertise most investors certainly won't applaud this move.
While the real estate certainly has great value it will take many years to realize the full benefits of it.
there won't be a dividend in 2014 - just read the press release - they're thinking of exiting the EMS business and become a real investment developer.
management is talking about essentially exiting the EMS business and to start all over as a real estate developer. Given the fact that investors were expecting EMS revenues north of $2 bln in 2013 and another dividend raise I don't think Mr. Market will show any mercy with the stock today.
While I was expecting ugly news I certainly didn't expect this.
actually it's going to be a really really bad day I guess with the stock down anywhere from 20 to 40% as investors got nothing to cling to anymore.
they went up with Apple now they're going down with them - as one of the last companies added to the supply chain on far too optimistic forecasts for Apple's new product cycle they are now the first to be eliminated.
given the new environment the dividend looks all but safe here - actually I don't see why investors would want to own the stock at this point. It has been a wild ride but it is coming to an end for now.
actually this is much worse than even the biggest naysayer might have thought - stock should go down 30%
will close at or near lows on institutional profit taking - shorted big time at around $46 after hours and pre-market, will pocket a giant profit at the end of the session. Yeah.
as Barclays just raised their price target from $5 to $6 I used the short bump to exit my position and wait for a better entry point next week. Even shorted some for a quick gain later this afternoon.
nobody is expecting good numbers but some people seem to be afraid of guidance which I expect to be really ugly given the outlook Apple offered. Nam Tai clearly will feel the pain here. Would think of revenue guidance around equal to the dismal Q1 which would trigger a huge sell-off.
would wait till next week now that the stock completely lost its momentum - will take some time to make new highs
thought the stock would be able to overcome the initial weakness but now it is heading for new lows. Would scale in starting from the low 3.20s.
actually I am looking for more gains on this short term even on lower volume - will sell at around $4.50 - hopefully next week
sure - stock should move up further over time - but every analyst and institution expected strong results and guidance and the big guys are taking profits now and selling to the retail investor (who still might earn good profits from here). But revenues are going to peak next quarter and that's usually the time the big players cash out - as evidenced today.
to add some more - will look for the low 3s
huge gain as predicted - down to $41 already
better listen to me