I read the Business Week article.
Although the company made the 100 growth list, it is also one of the lowest rate for sales growth, 7.9 over three years. Two other companies did worst on the 100 list and their p/e is similar to Sigmatron.
Why all the excitment? Am I missing something?
Most Asian stockmarkets are down.
Do you think that AUO is stronger than all of them and will swim against the Asian tsunami?
If you didn't sell while over $20, just sit tight and wait, it will come back.
You are closer to the basement than the roof.
Remember Pakistan and India and their feud, a wall of smoke.
Taiwan and China are building the same kind of wall and it will go away with the first gusty wind.
Great opportunity with AUO.
With Sigmatron I am not sure yet, I have seen the same kind of behavior with SNDK and it is back to the bottom.
I bought under $11 but I have a stop loss in case. I play the rise but I don't see how they can grow if they stay in the same business which seems a little of everything not very exciting.
I am afraid you are right about it.
Besides, I wonder why so much excitement if the stock is at the end of the 100 list.
For AUO, it reminds me of GNSS two years ago when guys were pumping the stock because it was in the flat panel display, the future they were saying.
But the main difference would be that GNSS never made much money and didn't increase their revenue much in the last two years while AUO is doing quite well and they are closer to the market.
Of course China would never go after Taiwan.
Look back two years ago with Pakistan and India with their soldiers nose to nose at the border and people were talking about their nuclear weapons.
A show, nothing else.
With the Olympic games coming to China in few years the country will behave, no worry.
The bad mood for the stockmarket in Asia is close to its end, a new upside is coming.
Growth my friend, emerging markets don't wear that name for nothing.
For years in USA, "experts" have talked about consumers debt too big to be sustained and the consumer would tumble.
New houses continue to be built, hardware stores continue to thrive and being built.
You may see some subsiding in these sectors when interest rates will go up but nothing else.
Now for months the same fear has affected Asian markets and these people are only beginning to be real consumers.
At one point people have to realize that the economy in Asia is still going up and the fear stops being a fear.
I do believe we are at that point in Asia.
And you don't have to believe me.
"we became the best military complex on the planet"
Really? Irak is a country 10 times smaller than USA (population wise) and so much poorer on all levels and still after 1 year, mistakes after mistakes are being made by this "so great military complex" on the planet.
A bully guy is not necessarily a smart guy and the strongest.
Take for instance NT, traded in Canada and USA, there is also some difference in prices:
No one is making a big deal about it.
If the press release is accurate, they said that past revenue and earnings will be higher once restated but warned about future for both.
Insiders were big sellers in the past. They had all the incentive to see higher revenue and earnings in the past not the opposite.
I can't understand why the stock would go down that much from that news unless many are expecting worst news to come.
When Nortel started that game last fall it was considered an opportunity to buy. This spring an opportunity to sell after more bad news came.
I am expecting worst than better for now.
Too many "honest" mistakes these days in public companies under the pretense of "complicated" accounting rules.
Almost all high tech stocks have seen a drop of 50% of their share price in the last two months after in many cases a 2 to 10 fold increase in a year.
AUO has begun its descent after all of them.
I expect a drop of the same amplitude for AUO followed by a stabilization phase and a come back.
I am not short, I am just looking at what is happening.
The only cure is time and institutions and large funds buying again.
The dividend policy should be stop right away : the end result of this dividend is more dilution of future earnings, that is all.
The company doesn't receive any money in exchange and they need billions for new plants.
Please, no more of that kind of dividend. The only dilution I am ready to accept is for a secondary offering to finance the plants.
This market is not convincing at all.
Each time it goes up, you feel it is because it wants to attrack small investors in the net in order to bail out.
With that "transfer" of power in Irak in few weeks, it looks like no one wants to jump into the market in case it goes bad.
Everybody knows the interest rates will go up in few weeks but again it looks like a date to bail out.
This market is in need of any pretense to leave the bag to the small investors.