AU Optronics Corp. (ADR) (NYSE:AUO)
CAPS Rating:
The Company designs, develops, manufactures, assembles and markets flat panel displays.
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The Company designs, develops, manufactures, assembles and markets flat panel displays.
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AU OPTRONICS DEPOSITORY RECEIPT formerly Acer, is in the business of making thin film, flat panel displays such as those used in notebook computers, digital cameras and camcorders, desktop monitors, car navigation systems, and high definition televisions and is a major player in that industry. The company is based in Taiwan.
The stock is presently priced at about $17.01 (June 17, 2008) but has a forward looking P/E of only 4 with earnings per share of $4.26 and a growth in the expected P/E of 9.25% with an earnings growth rate of about 37%. Based upon these figures, I believe that fair value for the stock is about $35.00 per share at present with plenty of room to grow.
The stock has recently seen a transient low of about $16 and a recent high of $20.66. Its highest point was $22.41 in November of 2007, just before the major correction in technical stocks.
I don't find a good reason, other than present market conditions for the stock to be this low and with reasonably low downside risk, I believe that improving stock market conditions should see this stock double in price or better.