SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Nam Tai Elec. (NTAI)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Clouseau who wrote (1529)1/9/1999 11:04:00 AM
From: Ron Bower  Read Replies (1) of 1696
 
Dave,

Preface by saying that I am not currently invested in Namtai and that I thought the Albatronics acquisition to be a mistake because they bought a lot of 'dead wood' and paid too much. I made the post for thread information only.

However, I see more positives to this report than negatives. Albatronics has been losing money all along on strong sales. Namtai has bought in the belief they can turn the company around by continuing the high revs, but increasing margins. Alb... had some accounts and other assets on the books that were overstated - not unusual for a company that's having financial trouble. Putting these numbers to the last report I read, Albatronics BV is a negative because of debt and losses. Namtai management is astute when it comes to investing in other companies and would only buy if there were actual value there.

I think this report is an indication of Namtai's auditors cleaning up the books, getting a clear picture of what they're getting into, and deciding what needs to be done going forward. One big step back. They can now go forward with real numbers instead of numbers being 'fudged' by the management of a bankrupt company.

I might point out a problem in HK/China. There is a real shortage of top quality people, particularly in management. Albatronics appears to be a company that can sell and produce, but an inability to profit. Namtai has shown an ability to profit, but has had problems getting new business. They are keeping the management people of Albatronics, but will be overseeing the price/cost/efficiency aspects. This could result in a very good combination.

FWIW,
Ron


Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News