Valuable Insights
Long/short equity, special situations, value, tech

Nam Tai Shares Could Triple Despite Apple's Issues

For owners of Apple-related stocks, the last two weeks have been torture. First shares were purged following the Nikkei Newswire reporting on iPhone component order reductions and Reuters reporting Sharp had halted iPad production. Last night shares sold off in sympathy with Apple's dismal outlook. However, we could not be more excited about these developments. We were given the opportunity to buy shares of Nam Tai (NTE) at prices we never expected to be possible. Despite potential near-term inventory adjustments with Apple, we believe shares of Nam Tai can triple this year. Shares trade at 4x and 2.5x our 2013 and 2014 EPS estimates (ex-cash), respectively - using what we believe are conservative estimates. Nam Tai has multiple catalysts and...

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