I'm looking at these LCD makers...AUO, LPL, HIMX.

All of them are ridiculously cheap with a forward p/e of 5.

Can someone please explain WHY they are so cheap? The market isn't stupid, but it seems to be discounting all of the companies in this industry to this same low multiple. I'm really tempted to put half my IRA in these companies and let it ride. Demand for LCD monitors and TVs is only going up in the future and more of the world enters the internet age, so why in God's name are the stocks so cheap?

Am I missing something? Is there any compelling reason NOT to buy?

Consumer slowdown, FPTV market is getting fairly penetrated, price cuts at retailers to move TV inventory will cause pushback on the panel makers hurting their margins, etc. Actually, there is a lot of concern about panel oversupply in 2009. GLW just gave mediocre guidance at best the other day and that stock never gets any love.

Still, I'm checking the analyst estimates for these companies.. Even the low end of the estimates for next year give them a p/e of 6-7. And if the analysts are wrong by 20%, woopdeedoo...thats still a p/e of 8. Seems darn cheap for a high tech company.

because fundamentals don't matter right now. stocks are a ponzi scheme. at least wait until the stocks are in favor and we're out of a bear market and a stagflation environment.

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soulful/latin/deep house + jazz

quote:

Originally posted by mndeg Past two days, where has the fed been injecting money into?

They did tried to sell Euro hard.. thats I know for sure.. heck some analysts even say that both ADP and Non-Farms payroll numbers were 100% fudged to support dollar.. but both failed to uplift sentiments..

I am guessing we will see a nice bull run this week.. I am not sure about stock markets.. but definatly in Euro in my opinion..

I say buy AUO now. Hold for at several years. It's an investment, not a trade. The price under values the company by HUGE margin. I think it's worth around $29, which gives it discount of about 160%!

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quote:

Originally posted by Krypton I say buy AUO now. Hold for at several years. It's an investment, not a trade. The price under values the company by HUGE margin. I think it's worth around $29, which gives it discount of about 160%!

I like these LCD names in theory, but in the end I wonder about the commodity type nature of their products. I mean at least Corning has other divisions (a unique bendable fiber-optic cable, environmental diesel business). Look at what's happened to Sandisk despite the explosive growth in the uses for flash memory. Just be careful with names like this.

Note: I've been long AUO, LPL and GLW in the past though I have no position in any of them now. If the economy strengthens I'd be tempted to buy back my GLW.

quote:

Originally posted by Shakka I like these LCD names in theory, but in the end I wonder about the commodity type nature of their products. I mean at least Corning has other divisions (a unique bendable fiber-optic cable, environmental diesel business). Look at what's happened to Sandisk despite the explosive growth in the uses for flash memory. Just be careful with names like this. Note: I've been long AUO, LPL and GLW in the past though I have no position in any of them now. If the economy strengthens I'd be tempted to buy back my GLW.

If I had to choose b/t AUO or GLW, definitely GLW for their product diversification...also their environmental projects! You've got my stamp of approval

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quote:

Originally posted by Kinezi They did tried to sell Euro hard.. thats I know for sure.. heck some analysts even say that both ADP and Non-Farms payroll numbers were 100% fudged to support dollar.. but both failed to uplift sentiments.. I am guessing we will see a nice bull run this week.. I am not sure about stock markets.. but definatly in Euro in my opinion..

I heard that ADP was always inflated and the non-farms payroll was highly boosted by government hiring.

according to options activity big buyers are bullish on XLF (financials) in the short term and bearish in the long term. this is also supported by options activity in the $VIX. i'm guessing one more shot to the upside to shakeout the shorts and then back down to reality we go.

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soulful/latin/deep house + jazz

Last edited by mndeg on Aug-03-2008 at 20:32

ahmad a says he's not manufacturing a nuclear bomb and that nuclear bombs "are so 21st century" LOL

he also said oil is overpriced because of the manipulation that's going on

that's very interesting...

http://www.youtube.com/watch?v=YlaO...feature=related

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soulful/latin/deep house + jazz

Here's what I think of Iran..

1. There is no evidence of a nuclear weapons program.
2. IF Iran did have a nuclear weapon, so what? If they dared to use it, they would only ensure their own destruction, many times over.
3. I think Iran should have a nuclear weapon as a deterrence to America.

I think America needs to get itself off oil as the main driver of its economy as quickly as possible. If I were president, I'de embark on a 10 year mission to do this. That way, they wouldn't give two shts about the Middle East, Iran, or Israel. Let them both burn for all we care.

As for the "state-sponsor of terrorism" label..They are only as guilty as America is in sponsoring their own proxy armies. They certainly are not guilty of invading other countries with absolutely no provocation.

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