I'm Holding NTE Nam Tai Electronics

[lattes]

Well I was surprised when I saw that there wasn't already a thread on this.

Chuck picked this one WAY back when it was around $3.50-$4 which was my first entry.

From Reuters:

Nam Tai Electronics, Inc. (Nam Tai) is an electronics manufacturing and design services provider to a group of equipment manufacturers (OEMs) of telecommunications and consumer electronic products. Through its electronics manufacturing services operations, it manufactures electronic components and subassemblies, including flexible printed circuit (FPC) board, FPC board subassemblies, liquid crystal display (LCD) panels and modules, thin film transistor display module, radio frequency (RF) modules, digital audio broadcast modules, Internet radio subassemblies, complementary metal oxide semiconductor imaging sensors modules and printed circuit board (PCB) subassemblies. It operates in three segments: consumer electronics and communication products (CECP); telecommunication components assembly (TCA), and LCD products (LCDP). As of July 22, 2009, the Company had acquired approximately 96% interest in Nam Tai Electronic & Electrical Products Limited.

I can almost guarantee that you own something with one of their chips or LCD screens:

http://www.namtai.com/corpinfo/customers.htm

NTE is not a 'runner' there is not catalyst to move it, it is just a sound investment in a company with a good product and great books.

NTE recently brought it's HK shares private under NTE, NTEEP is now being operated as a subsidiary of NTE. Possibly they will IPO it again in a couple of years when market conditions are better but the good part is that now all NTEEP profits belong to NTE.

Revenues are down considerably, but I don't know what NTEEP being added will do about changing that, it is all a bit confusing as far as accounting goes actually.

They have tangible equity of almost $7/share, and great current asset/liability ratio.

Make a point of also looking at their SEC filings:

http://google.brand.edgar-online.com/?sym=NTE

Last but not least, NTE was paying out a dividend of $.88 until the end of 2008 and have been paying out a dividend pretty regularly since 1992 so it isn't a huge leap in logic to think that once they return to profitability they will re-instate the dividend.

Anyway, although I see people saying all the time that there is no longer any such thing as a 'set it and forget it' stock. I think that NTE is one, only reason you need to keep it on your radar once you own it is so that you can average down if the market decides to punish it.

I am in for 1000 shares @ $3.82 so not heavy but I will be averaging up around $4 if we see it again. Otherwise I am not selling for a number of years, it is going to sit on the back burner and simmer for me.

NTE gets:

's

It might seem high but security of capital has to be taken into account and it is there with NTE because the company is not going BK any time soon.

GLTA
Dave

[lattes]

Sorry, made a mistake, it was Mac that called it. :-D

[Superfly]

*Superfly inserts a glass window so Lattes can keep talking about his non bio stock and hearing his voice*

[Mac]

Thanks for the recognition, Lattes. I'm still holding NTE long from $3.14 last March. The electronics industry in Asia isn't going anywhere but up from here, IMO, and NTE is well-positioned to capitalize. And, when this dividend kicks back in, watch out!

NTE's not nearly as exciting as pre-FDA-announcement plays, but it's a great way to help stabilize a portfolio and generate life-long cash flow.

[lattes]

News on NTE, good to see some new contracts and new products.

http://in.sys-con.com/node/207648

[lattes]

Nice Q3 for NTE

http://www.tradingmarkets.com/.site/...0News/2617060/

Again, something to hold very long in your portfolio.

[lattes]

I just wanted to bump this, the stock has been slowly eroding for no good reason and is looking to be a great buy at this price. Seasonal traders usually say that spring is good for tech, likely the next time NTE runs it will be up to $6ish and this is a great long term hold.

[lattes]

And another bump, trading at $5.07 right now, quite a steal IMO

[ChuckD]

NTE Earnings

The business environment in Nam Tai's product sectors remains difficult and extremely competitive. Sales in the fourth quarter of 2009 were $93.7 million, a decrease of 44.5% as compared to sales of $169.0 million in the same quarter of 2008. Sales in our CECP segment and TCA segment dropped by 59.3% and 45.0% respectively and LCDP segment increased by 17.9%, during the fourth quarter of 2009, as compared to same period in 2008. Sales in our CECP segment declined significantly mainly because of the continuing effect from the global economic downturn. The weak demand in the market for our consumer products adversely affected sales of all of our end-user products such as mobile phone accessories, which principally represented sales of our headsets containing Bluetooth®(1) wireless technology, educational products, optical products and home entertainment devices. Sales in our TCA segment also declined as a consequence of the decline in sales of TCA.
The Company's gross profit margin in the fourth quarter of 2009 was 10.8% as compared to 8.7% in the fourth quarter of 2008. Gross profit in the fourth quarter of 2009 was $10.2 million, a decrease of 30.6%, as compared to $14.6 million in the fourth quarter of 2008, primarily resulting from the decrease in sales.
Net income attributable to Nam Tai shareholders in the fourth quarter of 2009 was $0.4 million, as compared to net loss of $14.5 million in same quarter of 2008, mainly due to impairment loss on goodwill $17.3 million in 2008. Basic and diluted earnings per share in the fourth quarter of 2009 were $0.01 per share, as compared to basic and diluted loss per share of $0.32 in the fourth quarter of 2008.
For the twelve months ended December 31, 2009, our net sales were $408.1 million, a decrease of 34.5% as compared to $622.9 million in the same period last year. The Company's gross profit margin was 9.9% as compared to 11.3% in the same period of 2008. Gross profit was $40.3 million, a decrease of 43.0%, as compared to $70.7 million in the same period last year. We reported an operating income for the twelve months of 2009 of $0.4 million, compared to operating income of $6.4 million in the same period last year. Our net income attributable to Nam Tai shareholders for the twelve months ended December 31, 2009 was $1.7 million, or $0.04 per share (diluted), as compared to net income attributable to Nam Tai shareholders of $30.6 million, or $0.68 per share (diluted), in the same period last year.
(1) The Bluetooth® word mark and logo are owned by the Bluetooth SIG, Inc. and any use of such mark by Nam Tai is under license.
Non-GAAP Financial Information
Non-GAAP operating income for the fourth quarter of 2009 was $0.7 million, or $0.02 per share (diluted), compared to non-GAAP operating income of $3.5 million, or $0.08 per share (diluted), in the fourth quarter of 2008. Non-GAAP net income attributable to Nam Tai shareholders for the fourth quarter of 2009 decreased to $0.4 million or $0.01 per share (diluted), compared to income of $3.5 million, or $0.08 per share (diluted), in the fourth quarter of 2008.
Liquidity and Financial Resources
Despite current economic conditions, Nam Tai's financial position as at December 31, 2009 remained strong with $195.6 million cash on hand. Net cash provided by operating activities in the fourth quarter was $15.6 million. During the fourth quarter, the Company made capital expenditure of $7.9 million.
Nam Tai's cash on hand has been invested in term deposits with HSBC and China Construction Bank. The Company continues to exercise rigorous corporate governance and control policies and is not involved in trading of any debt securities or financial derivative products.
EXPANSION PROJECTS
During the fourth quarter of 2009, we expended approximately $8 million mainly on our ongoing expansion project of FPC manufacturing plant in Wuxi near the east coast of China, approximately 80 miles northwest of Shanghai. Upon the completion of construction of the plant in the second quarter 2009, manufacturing equipments and human resources were being established. In the fourth quarter of 2009, the plant spent time and effort to build samples for customers in applications of automotive and telecommunications. Small volume of mass manufacturing is expected to be scheduled in the first quarter of 2010. Continuously, there will be more samples to be built for more customers and higher volume of mass manufacturing will be commencing in the coming quarters.
PRIVATIZATION OF NTEEP
The compulsory acquisition of Nam Tai Electronic & Electrical Products Limited ("NTEEP") by the Company was completed on November 12, 2009. Withdrawal of listing of the shares of NTEEP on the Stock Exchange of Hong Kong also took place with effect from November 13, 2009. As a result, NTEEP has become a wholly-owned subsidiary of the Company.
COMPANY OUTLOOK
The business in 2009 was not satisfactory. The global financial crisis which continues from 2009 will affect the businesses of the Company in 2010. It is believed that the business of our CECP segment continue to drop in 2010. The Company will establish careful negotiations with customers on business terms to reduce further risks. Such uncertainty hinders the growth and so the business outlook for the Company in 2010 remains tough.
While it is believed that sales of optical products and educational products will remain weak, the demand for LCM and FPC products is expected to increase. Nevertheless, the growth for the year 2010 will be limited. The Company will concentrate on the development and manufacture of FPC products in the future.
In the coming quarters, the Company will focus on re-organization while achieving improvement in management which utilizes effective risk control system and strong company governance policies. Where necessary, new management executives will be recruited.
UPDATE ON TAX DISPUTE WITH HONG KONG INLAND REVENUE DEPARTMENT
Regarding the tax disputes of the 3 inactive or dormant subsidiaries of the Company, Nam Tai Trading Company Limited, Nam Tai Group Management Limited and Nam Tai Telecom (Hong Kong) Company Limited, the Company has been co-operating with the Inland Revenue Department of Hong Kong ("IRD") all along in supplying them with all the information we believe is necessary to resolve the disputes.
However, IRD does not accept our explanations that it was necessary for these 3 subsidiaries to perform their individual functions for the whole Nam Tai group and therefore the management fees paid by the Company to support and finance all the necessary overhead expenses of these subsidiaries (not located in Hong Kong) to contribute to the businesses representing the administration and finance departmental functions for the whole group under the corporate structure at that time were not regarded as necessary expenses by IRD.
Since it is believed that it will be difficult for these subsidiaries to continue co-operating with IRD in the future, if the Company discontinues to finance these subsidiaries, they will be forced to liquidate in due course. As these subsidiaries do not conduct any business and have been inactive or dormant for quite some time, and own either limited book-value assets or no assets, it is believed that there should be no impact on the Company's overall performance.
DIVIDEND
After serious consideration of the financial situations of the Company, the board has determined to continue to suspend dividend payments in 2010.






More here
http://www.prnewswire.com/news-relea...-83795767.html

[lattes]

So does someone know something that I don't? Where the heck is all this upward pressure coming from? Note, it is on pretty unconvincing volume so although I like and hold NTE I don't think this is a for real run. Might be a chance for some to trade some shares.

[lattes]

NTE just reported FY2009:

http://www.sec.gov/Archives/edgar/da...55416e20vf.htm

Note, the book value on the company is $7.28, Equity/Debt ratio = 1/.19 (For every dollar of equity they have they have only $.19 of debt)

Interest coverage is INSANE... $40,000,000 gross profit, $202,000 interest expense. This is a very very solvent company.

Cash per share: $4.41

Those are the most interesting bits to me.

Overall I like the company, I think consumer electronics is a no-brainer and this stock is just suffering from not being popular right now.

GLTA
lattes

[Superfly]

NTE just reported FY2009:

http://www.sec.gov/Archives/edgar/da...55416e20vf.htm

Note, the book value on the company is $7.28, Equity/Debt ratio = 1/.19 (For every dollar of equity they have they have only $.19 of debt)

Interest coverage is INSANE... $40,000,000 gross profit, $202,000 interest expense. This is a very very solvent company.

Cash per share: $4.41

Those are the most interesting bits to me.

Overall I like the company, I think consumer electronics is a no-brainer and this stock is just suffering from not being popular right now.

GLTA
lattes

So....why did they decide not to pay a dividend again with the balance sheet they've got. They used to pay a great one, even 5c would really help the stock.

Nam Tai Electronics, Inc. Announces Not To Recommend Dividend
Monday, 8 Feb 2010 08:53am EST
Nam Tai Electronics, Inc. announced that after serious consideration of the financial situations of the Company, the Board has determined to continue to suspend dividend payments in 2010.

http://www.reuters.com/finance/stock...20100208135300

[lattes]

I wouldn't pay one out either, $.05 meaning $.20? That would be more than they made in 2009. I REALLY don't like being in companies who pay out more in dividends than they earn, a history of over 50% makes me nervous (more in 2009 is alright, but if I see they regularly pay out too much I am not a happy camper)

Anyway, I sold some out at $5.05 on Friday and think I will replace half of what I sold today.

[lattes]

OUCH! Not a list you want to be on!

http://www.mysmartrend.com/news-brie...try-detected-s

Lowest Level of Efficiency in the Electronic Manufacturing Services Industry Detected in Shares of NAM TAI Electronics (NTE, MFLX, MEAS, MOLX, MOLXA)
Written on Thu, 04/15/2010 - 21:34
By Chip Brian

Below are the top five most inefficient companies in the Electronic Manufacturing Services industry as ranked by Revenue Per Employee (RPE). Analysts use RPE as a measure to compare the productivity of companies in the same industry.
NAM TAI Electronics (NYSE:NTE) ranks first with an RPE of $57K; Multi-Fineline Electronix (NASDAQ:MFLX) ranks second with an RPE of $60K; and Measurement Specialties (NASDAQ:MEAS) ranks third with an RPE of $88K.
Molex (NASDAQ:MOLX) follows with an RPE of $98K and Molex (NASDAQ:MOLXA) rounds out the top five with an RPE of $98K.
SmarTrend is bullish on shares of MEAS and our subscribers were alerted to Buy on November 05, 2009 at $9.33. The stock has risen 74.6% since the alert was issued.

[RC]

lol they ranked FIRST too!

[lattes]

Just jumped ship and sold the last of my position. Still at an overall profit on the company but their revenue continues to decline and that is not something I like to see as an investor.

http://www.rttnews.com/Content/Quick...=Quick%20Facts

(RTTNews) - Monday, Nam Tai Electronics Inc. (NTE: News ) said its first-quarter GAAP net loss attributable to Nam Tai shareholders narrowed to US$1.09 million or US$0.02 per share from US$3.88 million or US$0.09 per share in the prior year period.

Non-GAAP net loss attributable to Nam Tai shareholders widened to US$ 1.1 million from US$0.7 million in the year-ago period. Non-GAAP net loss per share for the quarter stood at US$0.02, flat last year.

Net sales for the recent quarter declined to US$79.26 million from US$102.15 million in the comparable period.

[Superfly]

Just jumped ship and sold the last of my position. Still at an overall profit on the company but their revenue continues to decline and that is not something I like to see as an investor.

http://www.rttnews.com/Content/Quick...=Quick%20Facts

(RTTNews) - Monday, Nam Tai Electronics Inc. (NTE: News ) said its first-quarter GAAP net loss attributable to Nam Tai shareholders narrowed to US$1.09 million or US$0.02 per share from US$3.88 million or US$0.09 per share in the prior year period.

Non-GAAP net loss attributable to Nam Tai shareholders widened to US$ 1.1 million from US$0.7 million in the year-ago period. Non-GAAP net loss per share for the quarter stood at US$0.02, flat last year.

Net sales for the recent quarter declined to US$79.26 million from US$102.15 million in the comparable period.

So....why did they decide not to pay a dividend again with the balance sheet they've got. They used to pay a great one, even 5c would really help the stock.

Quote:

Nam Tai Electronics, Inc. Announces Not To Recommend Dividend Monday, 8 Feb 2010 08:53am EST Nam Tai Electronics, Inc. announced that after serious consideration of the financial situations of the Company, the Board has determined to continue to suspend dividend payments in 2010. http://www.reuters.com/finance/stock...20100208135300

Guess thats why they dont want to pay that dividend after all