HTC - Prime Markets

[JohnSilverman]

Taiwanese mobile maker HTC aims for Middle East growth

Taiwanese mobile maker HTC aims for Middle East growth - The National

Are HTC a good bet, are the prime markets they have identified going to deliver, or should we be looking to the US for long term investment?

Any thoughts welcome!

K

 

[jensonjon]

things havent gone that well in the recent past but it could be a good time to get in - HTC CORPORATION TWD10 Share Price Chart | 2498.TW - Yahoo! UK & Ireland Finance

 

[gib123]

HTC is looking at a census EPS of 18.92 for this year, and using the common p/e valuation for a component stock like this, 15x p/e ratio is fair for its value. We're looking at 280 for a fair value and the maximum valuation of 20x p/e gives us 376, however, it's unlikely for the Taiwan Stock Exchange to catch on a big bull due to new taxation regulations. HTC is not likely to reveal strong upward strength, but may be quite dangerous in a volatile market situation.

 

[jensonjon]

HTC is looking at a census EPS of 18.92 for this year, and using the common p/e valuation for a component stock like this, 15x p/e ratio is fair for its value. We're looking at 280 for a fair value and the maximum valuation of 20x p/e gives us 376, however, it's unlikely for the Taiwan Stock Exchange to catch on a big bull due to new taxation regulations. HTC is not likely to reveal strong upward strength, but may be quite dangerous in a volatile market situation.

good point, could be risky of course, a lot depends on their new product, might be a long term punt if you can read the tech sector

 

[Predicabo]

HTC has hitched its fortunes to a Windows based OS which is not the market leader. Brave or stupid move? In having to ask the question you've got your answer with regard to investment quality.

 

[gib123]

good point, could be risky of course, a lot depends on their new product, might be a long term punt if you can read the tech sector

As the company is restructuring its strategy, we're looking at a slower mobile device growth compared to the previous skyrocket growth rate. Chances are HTC will strive again, but most likely we haven't reach the rock bottom yet, situation may get a little worse over this year and the following year, meanwhile, there are still some big uncertainties not cleared on macroeconomy level, the fiscal cliff, or european debts, there can be more difficult times for HTC. Nevertheless, they do have a few good products, we'll see how the competition goes this summer when Sammy releases their new flagship smartphone.:cheesy:

 

[jensonjon]

for anyone with general htc interest:
HTC One X+ (One Plus) review - Specs, performance, cheapest price (Wired UK)
HTC is springing into 2013 with global growth and new phones in sight | News | TechRadar
HTC Tiara may be crowned the first WP8 GDR2 smartphone | News | TechRadar

but as you say it depends a lot on the competition, plus you never know what patent issues may arise, asian market is key for them - its got much more room for growth than europe/ us if they get it right

 

[JohnSilverman]

HTC just looks such good value the moment. What about the Blackberry acquisition, or other possible takers for them, if there are rumours re. Lenovo surely a takeover is likely in general?

As for the Windows direction, surely Microsoft aren't that much of a spent force - they are so BIG!

Thanks for all the tips guys.

 

[rathcoole_exile]

Taiwanese mobile maker HTC aims for Middle East growth

Taiwanese mobile maker HTC aims for Middle East growth - The National

Are HTC a good bet, are the prime markets they have identified going to deliver, or should we be looking to the US for long term investment?

Any thoughts welcome!

K

HTC were in the Middle East for a while a few years ago under the guise of the brand i-mate.
Just take a look at what happened to i-mate.

with all of the problems of counterfeiting, spares supply etc in the Middle East, I wouldn't count on that particular market to bolster any company's performance..

 

[jensonjon]

"HTC has had difficulty in securing adequate camera components as it is no longer a tier-one customer.." - who is in charge here? HTC One launch delay: Blame camera shortfall, HTC says | Mobile - CNET News

 

[JohnSilverman]

yes, the components issues seem problematic for HTC, still a big brand though, to me you really only have samsung and apple in a similar bracket

 

[jensonjon]

I certainly would not touch Apple stock, too much trouble making going on.

 

[JohnSilverman]

their stock is certainly down (something like 20% year on), due to report in a couple weeks, market saturation and price point seemingly the major factors

 

[JohnSilverman]

"Apple is a great example of a stock that got too popular for its own good."

"When a stock like Apple lures so many investors, who drive the price up, everything is fine as long as the company can deliver increasing sales growth and maintain industry-beating profits."

"But when the company's stellar growth or margins suffer even a bit, and the realities of economics set in, investors who priced the stock for perfection have second thoughts. "

 

[jensonjon]

More problems for HTC in the components area - Nokia has won a patent fight over a recording device in the HTC One meaning that production will all but cease until they can find a substitute component and supplier. 3% fall in shares. Whatever HTC's primemarkets if they cannot deliver a product they will lose out in Asia as they already have in Europe and US.

 

[JohnSilverman]

HTC has appointed Jack Yang as president of South Asia and Sirpa Ikola as senior director of marketing, South Asia. These guys have good track records and will support stock proces in the short-medium term.