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Flat growth
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bradical
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01-Nov-2006 17:08
Yells: "Strong TAbeliever but also on God's help & wisdom!" |
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Price & buying interest for this stock has picked today and yesterday, with some buyers of 100,000 units. Is this a false start? I have been burnt by this stock due to wrong timing before. There were two bottoms touching the bollinger band just in Oct. Time to buy? |
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Nostradamus
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30-Oct-2006 23:00
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OCBC has downgraded its rating to "hold" from "buy" and cut its target price to $0.88 from $1.03 sgd previously after the supplier of plastic components to the electronics industry posted disappointing first half results. "Our takeaway from the results briefing is that things are not going to improve in the second half to March 2007 and could take a turn for the worse in the fourth quarter to March," OCBC said in a note to clients. "In light of the disappointing first-half results and a potentially poor second-half performance, we have scaled back our year to March 2007 earnings estimates by 15% to $22.4 mln," it said. |
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Nostradamus
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26-Aug-2006 21:48
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The recent jumps in benzene and ABS are bad for First Engg. These are feedstocks that go into the engineering resins used. Its printer business (1/3 sales) is fine as HP negotiates directly with the suppliers but not its HDD (1/3 sales) operations. Coupled with rise in the cost of carbon fibre, gross margin may fall 3% points in FY07, leading to only flat or moderate growth. CSFB has a price target of $1.46. AVOID. The charts for ABS and benzene prices are shown below. 
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Matthew8
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24-Aug-2006 12:49
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Nostradamus - Yes. I had just checked L & T's Research and the report is there. Thank you anyaway. |
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Nostradamus
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24-Aug-2006 10:35
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Matthew8, it's from a Lim & Tan report. |
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Matthew8
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24-Aug-2006 08:13
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Nostradamus - Would you like to indicate the source of this report? Is it from a financial institution or a newspaper report? |
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Nostradamus
Supreme |
23-Aug-2006 23:17
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The new automative programs (Bezels) for Visteon and Arvin Meritor were delayed dued to qualification delays and Ford's (Visteon) decision to temporary shut down operations due to high inventory levels in the US. As a result, sales would likely come in around $26m (12% of sales instead of original projection of 15%). The business machines segment (37% of sales) which counts HP as its major customer is expected to see 30-35% sales growth this year, underpinned by HP's market share gains and sub module assembly for HP's new 6 individual ink printer mechanism. HP's introduction of new models on this new platform also benefited the company. However, profit margins are expected to be under pressure due to intense competitive pressures from competitors such as Sunningdale (cartridges) and Meiban (paper trays). While the company is currently the sole supplier for the ink supply systems, HP is currently qualifying Univac as a 2nd source. The hard disk drive segment which accounted for 44% of sales last year is expected to see some hiccups reflecting Seagate's merger with maxtor as well as new competitor (Hi-P) for air combs. Seagate's migration to perpendicular recording, which requires less air combs is also another negative (similar problem with Magnecomp). Other problems are the continued strength of oil prices (key raw material for their resins) as well as weakness of US$ (they collect in US$ while cost base is in Asian currencies). At $0.80, historical PE and forward PE is 6.3x (flat profit). While this is at the lower end of its historical trading range of 5.5x -9.5x. there's no catalyst in the near to medium term. The stock is down 40% from Affinity Partners' acquisition price to $1.30 (28.15%) in Aug 05. As its peers are also trading around current valuations, maintain HOLD. |
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