GREY:NTPIF - Post by User
Post by
dmelfion Apr 30, 2004 8:09am
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Post# 7424296
NTE, AUO
NTE, AUONo matter what I look at, I keep coming back to these two stocks for timeliness (right time and place with product and market), fundamentals, P/E growth potential and profit growth. Another is OVTI.
Both NTE and AUO are consistently potential low cost providers in their respective areas. Making them potentially more profitable in their respective areas than their compition, both are investing heavily in new plats and seem well positioned to gain market share.
Demand for larger LCD (AUO) is considered strong for near future... some pundits expect market price on smaller screens to drop... which may be cause of some sell off. AUO consistently reduces their cost of manufacturing, and larger screens are more of the mix all the time..
NTE has muddied the waters with their IPO of 25% of 50% of there production capacity.. that IPO went very well but would dilute sales etc of parent company. But they will receive 75% of dividends so not sure.
I think NTE has a incsight into this that we dont have, that is how they will use the money etc, they have a 60mill profit from the sell off and I am sure they have a good use for it.
I feel NTE's objective is to build a lot of wealth for their stockholders as quickly as possible... not necessarily by down and dirty production and sales stats.. but by leveraging ownership in companies like TCL which I believe is a MAJOR coup for them to own 9% of a the largest home grown China mobile phone company (3rd overall behond Motorola and Erickson (or nokia... memory fails me)
But their deals are getting confusing to the outsider. If you read up on it, they have bought a number of mysterious holding companies and went thru 3-4 complex meneuvers to end up with 9% of TCL Mobile.
While this is an exclusively China production facilities, this is a company incorporated in British Virgin Islands... the IPO was incorporated in the Caymon Islands... if you see what I mean.
I am betting here that NTE has some insight into the political and economic environment in China and has a "Big Plan" to capitalize on that.. and that they have friends in the chinese political arena helping them. So for me this isnt strickly a "fundamentals" play.
Dom