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Even if Chartered is profitable with the same profit margin as its latest results, in the next few quarters, fundamentally its share still has no value. When is it going to overturn that $1 billion loss it has incurred for the past few years, we will never know. We are also no longer looking at semiconductor boom days like in year 2000
Chartered missed forecasts with its smallest profit in three quarters, hit by weak video game console and mobile phone orders. It also provided a weak guidance. It warned investors of flat to 3% lower sales and a smaller profit in the third quarter due to excess stockpiles and weaker-than-expected consumer demand.
Chartered's price dropped to a seven-month low after CEO Chia Song Hwee told Reuters that the global semiconductor industry could post slower-than-expected growth in 2006 as customers cut back orders due to excess stockpiles.
"The industry environment can be characterised as uncertain due to rising inventory levels and less-than-normal seasonal expectations for the second half of the year," Chia told analysts in a conference call. "While we are on track to capitalise on new engagements such as AMD, we do see the general market weakness slowing our overall growth plan for the year."
Chia said the third quarter's performance would be affected by weak orders for video game consoles, MP3 music players, digital cameras and mobile handsets, offset partially by strong demand for workstations and computer peripherals. "For Q3, our strongest segment is the PC segment, which is not quite in line with the industry, which is seeing overall PC market weakness, while our weakest segment would be the consumer devices," he added.
Traders said investors were selling shares on worries that the firm may slip back into the red in the next quarter given that U.S. tech sector is showing signs of slowing as well. While Chartered's earnings were roughly in-line with expectations, the guidance forward was weak. If things deteriorate, Chartered can go into a loss.
Analysts said Chartered should be able to stay profitable this year, although the outlook for 2007 remained murky. AMD's orders should help Chartered to remain in the black for Q4, although it would be hard to say in 2007. Inventory issues should be resolved in one or two quarters, but a lot depends on the strength of consumer demand -- the outlook is uncertain due to record-high oil prices and rising interest rates.
Not vested. Will avoid unless price drop to an attractive level with good safety margin!
well... not exactly to avoid..
looking at the price..
if gt $$ to hold..
can hold for some weeks..
Well, this is not the first time....had been disappointing quarter after quarter. Will continue to aviod...
this is very disappointing.....
the rivals TSMC & UMC are reporting better results.. seems like CSM is really uncompetitive at all.... even with the recent deals with Xbox & AMD.... sigh... tik better off load and vest it in another counter....
the best thing is the analysts are upgrading this counter last week.... waiting for ppl to buy and then they off load...
looks like many people offloading on this stock today!
Plunge -9% to $1.22 since exchange opened. Bad sign as it could go further down. Best to hold first before heading fr good leh long price.
billywows... at least its still a profit for you.
this one make me lose big money. another disspointing quarter for this company!
this one make me lose big money. another disspointing quarter for this company!
SINGAPORE (Dow Jones)--Chartered Semiconductor Manufacturing Ltd. (C27.SG) reported
second quarter earnings at the low end of guidance and warned of a weak third quarter
as consumer demand for video games slackens.
Another disappointing quarter...
Chartered Semi swings to quarterly profit; updates outlook
By Katherine Hunt
Last Update: 6:43 PM ET Jul 20, 2006
Got mine at 1.00 early last year, Tanglinboy.
I used to be positive with CSM due to its Xbox 360 and AMD deals. But, not anymore in view of the reported slower Xbox sales and oversupply of PCs now.
Look like its Q2 results out this Friday morning may have little impact judging from its past 2 weeks trade. This no action is really disappointing despite its recent upgrade by UOB to 1.98.
However, I got this strange feeling about the recent chip shipment made last month to AMD ... Lets see its results this Friday ya.
You vested too in CSM?
hey billywows, are you vested in this stock? If so, what price did you buy at?
By Jennifer Tan
SINGAPORE, July 18 (Reuters) - Singapore's semiconductor firms are expected to post a third straight quarter of profits in its latest earnings period, buoyed by robust demand for the chips that power cellphones, wireless networks and video game consoles.
But contract chip maker Chartered Semiconductor Manufacturing Ltd. (CSMF.SI: Quote, Profile, Research) and chip packager STATS ChipPAC Ltd. (STTS.SI: Quote, Profile, Research) may see third-quarter sales moderate from the second as customers cut back on orders following a build-up of inventory, analysts said.
"In Q2, Chartered benefited from orders for Xbox 360 --although there was some slowdown, wireless LAN (local area networks) and handsets, while STATS saw strong demand for communication networks like Bluetooth and cellphones," said Don See, analyst with DBS Vickers Securities.
Chartered reports earnings on July 21, and STATS is due to report on July 27.
Chartered, together with major customer and technology partner International Business Machines Corp. (IBM.N: Quote, Profile, Research), supplies the central processing unit (CPU) chips for Microsoft Corp.'s (MSFT.O: Quote, Profile, Research) Xbox 360 game console.
Both Chartered and STATS face an uncertain second half as the industry slows from a robust performance in the first six months of 2006, Daiwa Institute of Research analyst Pranab Sarmah said.
"The chip industry could be weaker than expected, as some customers have turned cautious following an oversupply in some segments like PCs, and are taking steps to lower their orders. There are also excess stockpiles in consumer and communications segments, such as LCD TVs and low-end handsets," he added.
Chartered, in which Singapore state investment firm Temasek Holdings [TEM.UL] has a 60 percent stake, ranks alongside China's Semiconductor Manufacturing International Corp. (SMIC) (0981.HK: Quote, Profile, Research) in the market for custom-built microchips, which is dominated by larger rivals Taiwan Semiconductor Manufacturing Co. Ltd. (2330.TW: Quote, Profile, Research) and United Microelectronics Corp. (2303.TW: Quote, Profile, Research).
Wow!! AMD started using CSM's chips liao now .... ??!! That means production few months back in Spore!
Wonder if CSM has factored in these 'quick & sudden' chip sales into its Q2 results.
The strangest thing is that these AMD shipment news does NOT come from CSM at all. Its coming from AMD and brokers.
CSM has been really quiet about its AMD deal so far. And it is recently upgraded by Citigroup (in US) and UOB Kay Hian (in Spore). Kinda makes you suspect that its Q2 earnings are better than expected.
CSM is a very speculative stock, so trade with care ya.
SAN FRANCISCO, July 12 (Reuters) - Advanced Micro Devices Inc. <AMD.N> said on Wednesday that it had started selling computer processors made by its contract manufacturing partner, Singapore's Chartered Semiconductor Manufacturing Ltd. <CHRT.O><CSMF.SI>.
Does this means that there maybe some revenue grow for CSM?
Thanks billywows..
Chartered.... Go Go Go.... another 8 days to Q2 results...
Haha!! Chartered can go to SGD 1.80 by Jan '07 ... I really happy liao as I got them at SGD 1.00 last year.
Dun want kanna bluff by previous target few months (think its OCBC) that it would hit SGD 2.00. Very tricky .....
last night my crystal ball told me it will hit $5 again next year...:) :) :)
hey billywows,
wah! ... 1.98???!! **Incredulous**
wah! ... 1.98???!! **Incredulous**