AUO: Optronics
3rd largest maker of flat panels
p/e: 3.9
p/s: .62
p/b:.99
ROE: 26.5%
ROIC: 18.5%
Shares tumbled despite yoy earnings growth tripling. Fears of oversupply could compress margins in the 3rd quarter, but the market has most likely factored that in.
In the not so long run, a rising Asian and Latin middle class will consume more and more LCD products...any glut of LCDs will not last long.
I've gotten burned on commodity goods like this before, but I think it's worth a look. Obviously, there's no financial exposure here, yet the share price has been dragged down with the EEM correction/financials turmoil. I would argue that LCD production remains a secular growth industry. The need for OECD consumers to replace existing products, combined with rapidly growing emerging market demand means growth should continue.
3rd largest maker of flat panels
p/e: 3.9
p/s: .62
p/b:.99
ROE: 26.5%
ROIC: 18.5%
Shares tumbled despite yoy earnings growth tripling. Fears of oversupply could compress margins in the 3rd quarter, but the market has most likely factored that in.
In the not so long run, a rising Asian and Latin middle class will consume more and more LCD products...any glut of LCDs will not last long.
I've gotten burned on commodity goods like this before, but I think it's worth a look. Obviously, there's no financial exposure here, yet the share price has been dragged down with the EEM correction/financials turmoil. I would argue that LCD production remains a secular growth industry. The need for OECD consumers to replace existing products, combined with rapidly growing emerging market demand means growth should continue.
