Monday, February 09, 2009

Quick Update

Picked up a small piece of Nam Tai Electronics (NTE) today at $4.75 after its large drop following its earnings report. I might be catching a falling knife here, but I've been tracking it for some time now and I'm finally taking a bite. It is trading below net cash (one of the reasons it was on the watch list was its near-cash valuation), but it's good to be aware that the company has lost some of its cash over the past year due to weakness in its business. They have also suspended their dividend in an effort to preserve their cash reserves.

It's definitely not a sure thing, but I'm in for a small piece and looking to get out on any reasonable advance. Not willing to hold it to $0, but I don't see that happening soon... I just don't foresee management burning through their cash that fast.

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