Monday, May 14, 2007
Two Taiwan techs
“Fears about a breakdown in relations between China and the US are not realistic,” observes
Jim Trippon, editor of
The China Stock Digest who he looks to two Taiwan tech ideas.
“Fears about a breakdown in relations between China and the US are not realistic,” observes Jim Trippon, editor of The China Stock Digest who he looks to two Taiwan tech ideas.
“Don’t let the political rhetoric fool you; America and China may talk tough in public, but both nations benefit enormously from China’s rise as an economic power.
“Himax Technologies (NASDAQ: HIMX) is an integrated circuit design company that designs, develops, and markets the electronic parts that operate the LCD television and computer screens which have become a part of the electronics of everyday life.
“Himax expects small and medium-sized screen demand will continue to grow as the company adds new customers and products. We maintain our “buy” rating on this company as it pursues its expansion plans and its shares trade at a P/E multiple of 14 with an earnings growth rate of 4.2%.
“Taiwan Semiconductor Manufacturing (NYSE: TSM), the world’s largest manufacturer of contract microchips is under pressure following its first quarter, which was affected by inventory correction and seasonal fluctuations.
“But revenues slightly exceeded the guidance given in January and in its earning report Taiwan Semiconductor projected a brighter outlook for the future. The company continues to be a technology leader, innovating and winning performance awards.
“The stock still presents good long term value with a forward P/E of 13.8 and a trailing twelve-month dividend yield of 3.4%. Despite some revenue volatility, Taiwan Semiconductor continues to deliver its dividends, and we share its optimism for the second quarter.”
posted at 12:09 PM
