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I think UTAC is a buy now. Book value dropped to 1
The price of UTAC seems to have stabilised. Looks like a good bargain. Fundamentals have more or less remained unchanged and yet the price now is about 63% compared with April's peak of $1.10. Can our TA gurus at this forum advise whether the technical position has changed and whether it is advisable to enter at this level? Thanks.
Some recent weakness in orders from key customers such as Broadcom, Powerchip, CSM, Sigmatel and Qualcomm. Management expects positive contributions from UTL as well as stronger orders from Hynix, Nanya, Sitel and Sandisk to help offset the weakness.
At $0.67, forward PE is 8x. Competitors such as ASE Test (6x PE), Amkor (6.8x), KingYuan (7.5x), ChipMos (6x), Silicon Precision Industries (7x), Global Test (7x) and PowerTech (9x) are also trading around the same valuations. Integration risks with UTL exists.
UTAC 2Q06 Net Profit More Than Doubles To $15.5 Million; Raises FY06 Revenue Growth Target To 70% From 40% Previously
It posted better-than-expected results. Its 2Q06 net profit grew 113.8% yoy, but fell 24.9% qoq. 2Q06 revenue grew a better-than-expected 55.7% yoy. This is the 12th consecutive quarter of sequential revenue growth and profitability. The growth was driven by strength in the comms, flash memory and analog sectors and 1 month of contribution from NS Electronics Bangkok. The Thai subsidiary will be renamed UTAC Thai Ltd (UTL).
It has also provided a good outlook. It is revising FY06 revenue growth target from 40% to 70% over FY05. For the flash memory segment in 3Q06, it is cautious due to rumoured delays of the launch of the next-generation of flash-based iPods.
This stock is much better than CSM or Stats. The price should have already factored in the weak Q2. Maybe can accumulate.
cashiertan is right!
the TA charts look quite bad... its in a serious downtrend. wait till it bottoms.
the TA charts look quite bad... its in a serious downtrend. wait till it bottoms.
come back when the price bottom. this counter is a dropping knife at this moment. sell the gain when this counter does a minor rebound.
ASE formed a JV with Powerchip for memory testing and packaging called Power ASE Technology. The new facility is scheduled to start mass production in 4Q06. Note that Powerchip is Utac's key customer in the DRAM segment.
ASE's entry into memory backend raises concerns on the competitive landscape and potential competition while EEMS' - an Italian OSAT firm - current success in gaining market share from Utac is another key worry. EEMS shares a similar business focus and customer base as Utac.
A lot of bad news is already factored in the price, but it's still expected to be downtrending or range bound in the near term.
I think will fall further. Wait.
Will wait further. TA is not possible.
Today Biz Times, Namura call for strong buy @ 0.715. Now the price is 0.70 @ 09.48 am
Any views? Thanks
Hi OngHuiH. I read from research reports in the Internet. Remember that the news from newspapers are at least 1 day late. That's the power of the Net.
I must thanks Nostradamus. I cut losses when I read your post. How did u manage to get the info much earlier than others?
It was only report in todays's Biz Times. I reduced my losses by more than 1K!
Thanks.
For your info a Financial Institution sold 10.453 mil shares of their holdings in UTAC recently....... so coupled this with other reports that you see here..... prices are likely to head south.... so be ready for some rough landing......
Hi YSH2006
Try CNBC CH 15 on Fri 14 Jul 06 @ 6.00 pm on Managing Asia. If I'm not mistaken the CEO is being interviewed by the news presenter Christine Tan. Perhaps you can get more info & insight on the co. I'm hope I'm right on the programme..... or else it was last week's programme where the CEO was being interviewed.
Good luck...
All these research reports are sometimes meant to fool us. One moment upgraded and next moment downgraded. I think UTAC used to have a target price of about $1.50 - $2? Now 80c?