Paul, i own AUO, averaged down once, and am a fair amount underwater. There is a significant short term surplus in flat screen glass in Korea, Taiwan, and China. There will continue to be short term pressure on these manufacturers. Ideally, in pure capitalistic world, the increased supply will lead to lower prices at retail, which will spur demand to soak up the glut. (Do you know anyone who DOESN"T want an LCD monitor or TV?)
I am looking to get out of AUO soon, because I think the supply/demand picture is negative for them in the near term.
I think GNSS (supplier of chips for LCD) and GLW - Corning, manufacturer of the glass used in the production of the monitors and TVs are stronger plays.
You said that AUO makes chips, i thought they producted the tvs and monitors. larry |
