Nam Tai Elec. (NTAI) Message Board

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Technology Stocks : Nam Tai Elec. (NTAI)

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To: Hectorite who wrote (1495)	9/17/1998 3:58:00 PM
From: Ron Bower	of 1696

Hectorite, Was composing my answer when I found that Norm had already. Albatronics was on the verge of bankruptcy and still is after the cash infusion by NamTai. They are one of the NPLs (non-performing loans) that everyone is referring to when discussing Japanese banks. According to the most current balance sheet I can find, nearly all of their debt is current. It may be that NamTai intends to sell off various interests of the company - they are spread out with interests in many other companies - to reduce the debt. With the 3.65 debt load and current economic conditions, most any interest rate would be hard to overcome. NamTai had better be sure of the bookkeeping before they get in too deep. Albatronics debt is equal to approximately 60% of NamTai's cash. I haven't bought yet as this deal hasn't come together for me. Due to weak consumer demand and competition, NamTai has projected a large reduction in their sales. Then they go out and buy into a competitor that's deep in debt, not showing earnings, and also operating well below capacity. They're paying an amount equivalent to BV and I'm sure that's less than the company is actually worth, but... FWIW, Ron

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