Nam Tai Electronics, Inc. (NYSE:NTE)
An electronics manufacturing and design services provider to a select group of the OEMs of telecommunications and consumer electronic products.
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dividends
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Fudamentals look good... Intuition tells me this stock will bounce back. Most of my top gains have come from buying after a market over-reaction and the recent crash of this stock definitely qualifies as such in my book.
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A value proposition
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The market over reacted. Great fundamentals here by almost any metric... with so many businesses facing at least some commoditization pressures, I'll go with a company with hardly any debt, earning real money, and a history of giving it back to shareholders.
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Will rise above $15 within a year, given that buying at $16.80 will still give a decent dividend yield of 5%.
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Shrinking margins in highly competitive electronics business have pushed this stock down. NTE is still growing and a new factory will add to 2007 results leading to a price rebound. Dividends have been reduced for 2007 yet at this price should still give a nice yield and help this stock to outperform.
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Price dropped too far
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Beat up for lowering dividend to raise investment capital, but I don't see any indicators that value has decreased...
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