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Author: Larry01Gott Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3431  
Subject: Diversity of Nam Tai Electronics Date: 10/14/2003 5:14 PM
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I am reluctant to "recommend" any stock, but if I WERE to recommend a stock that every participant on this board should have, it would be Nam Tai Electronics-NTE. Over the months, I've said that in different ways.

Here is one reason why:

(1) We have just seen UNTD-United Online take a swoon from $40 to $26 -- and with good reason. It majors in one area.
(2) We saw APPX-American Pharmaceutical Partners dip from $40 to $26 also, because of a perceived threat to the EXPECTATION in one area. (even though they have a broad product line)
(3) We have seen BSTE-Biosite decline from a high of $55 to a low of $27, because of a competitive threat on their #1 product.
(4) And although the China Portals FOUR (incl chinadotcom) are trying very hard to diversify their income -- it still enters each company primarily through one portal.

Is Nam Tai Electronics setting itself up in similar fashion?
I don't think so!!
Here is what they say about themselves in their news releases:

About Nam Tai

We are an electronics manufacturing and design services provider to original equipment manufacturers of telecommunications and consumer electronic products. Through our electronics manufacturing services operations, we manufacture electronic components and subassemblies, including LCD panels, LCD modules, radio frequency modules, flexible printed circuit subassemblies and image sensors. These components are used in numerous electronic products, including cellular phones, laptop computers, digital cameras, copiers, fax machines, electronic toys, handheld video game devices and microwave ovens. We also manufacture finished products, including cellular phones, palm-sized PCs, personal digital assistants, electronic dictionaries, calculators and digital camera accessories for use with cellular phones.

!Talk about being in the right place at the right time with the right price with the right product mix!

Two quarters ago (3/31), their revenue gained 79% y2y.
Last quarter (6/30), their revenue gained 112% y2y.
My estimate for the quarter soon to be reported (9/30) is 139% y2y.

Pretty solid, I'd say.

Me? Mostly factual, rarely cheerleading, but for Nam Tai I'll make an exception.

What do you think? Any reasons to doubt? (Other than monsoons, terrorists, earthquakes, and a North Korea bad hair day?)

Larry
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