Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: blankmind who wrote (13444)	12/15/2001 7:39:38 AM
From: blankmind	Respond to of 78595

For a dirt-cheap asset & income play - I like: - Nam Tai (NTAI) - trading at $17 - they generally earn about $2.50/year; will do about $2.75 in 2002; continues to buy back shares; $4/cash per share; $16/book value; no debt; & Merrill Lynch just came out w/ a buy rec last week - Nam Tai is a contract manufacturer in China - taking advantage of all the Toshiba-like Japanese plants which are outsourcing; makes the LED screens, high-end batteries, etc... - aside from the fact that the company gets no respect; & they have the worse PR Dept; if anyone can find any justification for the price being this dirt cheap, I'd be amazed

To: blankmind who wrote (13444)	12/15/2001 12:01:06 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78595

blankmind, re: NTAI: A company discussed here several times over the past few years. Sometimes timing is everything, and maybe it is time for NTAI. For me, for NTAI, my timing and initial purchase prices were wrong. I still have my position from years ago, and I added a bit 12/21/00. With hindsight, we see that earnings have been erratic. In past times, the issue for many was Mr. Koo, then Chairman and largest stockholder. It seemed he ran his company as if it were his company (!) in a country not known for having public shareholders -- There was much discussion on the NTAI(F) thread about one or more very blatant stock transactions that he allegedly instituted to benefit himself to to the exclusion (and detriment)of other stockholders. Another concern for me was that profit margins were very high in business dealings with Japanese customers. I suspected that these customers (and there were only a few large ones) would either alter that by renegotiating their contracts with Mr. Koo and Co. or else they'd go to another contract manufacturer/assembler. Also, fyi and fwiw, another kinda/sorta similar company mentioned here at the time and periodically since - that might also now be reconsidered as a potential investment - is Mike Burry's old choice of Deswell (DSWL). I never could see how a dinky plastic injection molding shop could sell at the price it did (always seemed too expensive to me). However, some of the balance sheet numbers looked good, and several people here believed DSWL(F) a compelling buy. Or if not that, a better buy than NTAI(F). It's hard to tell from the 5-year comparative chart which turned out to be the better bet - the success of either investment I will guess, likely depended on someone's entry point into these volatile stocks. From my perspective and guess, I picked the wrong stock at the wrong time: DSWL was the better investment as regards stock rise, and there was a decent dividend with it to boot. (There were also opportunities to take profits or re-enter positions with either/both stocks - and if I recall correctly, a couple people here did do that too.) finance.yahoo.com Anyway, fwiw, I'm still in NTAI. Maybe 2002 will be our year for this stock.