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HTC 之 92共識 July 7, 2015

Posted by hslu in Economics, Taiwan.
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1 comment so far

HTC 宏達電2015年第2季業績一落千丈,6月份的營收比去年同期減少60%,創16個月來最低紀錄。

What a headline。

I don’t care what kind of company HTC is,when it lost 60% of its business from a year ago,it is very difficult to turn the business around。 There simply isn’t enough money to do anything。

Banks won‘t lend you money。Stock market won’t support issuing more shares。What can a company do other than declare bankruptcy?

Would you want to buy a thousand shares?It may be a perfect turn around candidate。

You decide。

Today’s price action:

Close: $73.80 新臺幣 (7/6/2015)

Open:   $73.50 新臺幣

High:    $74.50 新臺幣

Low:   $72.20 新臺幣

Volume:   8,456 張 or 8,456,000 shares。

HTC 宏達電 股票 - 月線

HTC 宏達電 股票 – 月線

HTC a goner? October 23, 2013

Posted by hslu in China, Economics, iPhone, jobs, Politics, Shanghai, Taipei, Taiwan.
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A disturbing news about HTC cutting down its cellphone productions in Taiwan and China certainly didn’t help HTC’s stock which has already lost almost 90% of its market value since 2011:

Chart forHTC CORPORATION (2498.TW)

10-year stock chart of Taiwan’s HTC.

I believe many Taiwanese have been 套牢了by this stock as well because they bought the stock as it was moving up in 2010 and are still holding them in their brokerage accounts after it dropped from the record high of 新台币 1,238 to 新台币 136 now: a drop of 89% in about two and half years.

HTC is short of cash and has experienced disappointing sales in the US and China. The company may disappear or it may be taken over by someone else.

Another Taiwanese stock that is also facing difficult time is Acer.

Chart forACER INC TWD10 (2353.TW)

Acer 5-year stock chart

The reduction of PC sales worldwide hit Acer particularly hard. Its newer version of notebooks and tablets just couldn’t compete with tables from Apple and Samsung. It is losing market shares fast and the company probably doesn’t have enough cash to turn it around now. It once spent millions to hire CEO from foreign countries to run the company but Acer’s market share didn’t improve with foreign management. Unless the company can come up with something significantly new, it, along with HTC, may follow Nokia and Blackberry into sunset and cease to exist soon.

Two of Taiwan’s once brilliant technology companies are experiencing such a difficult time in the market place is very disturbing. To many Taiwanese, it probably feels like that the legs which were supporting Taiwan’s future was severed at the knees. Lack of funds to promote its products in the US and China may be one of its problems even though its products are on par or even better than those came out of Apple and Samsung. When a company’s market share is shrinking, it negatively impact its cash flow which hurts everything from research, innovation, product development and marketing. When we were in Shanghai about a month ago, we went to The Bund and saw Samsung’s Galaxy S4 was prominently marketed on the big screen in Pudong.

I am certain that the top management of both companies is responsible for misjudged the competitions from Apple and Samsung. I also wondered out loud that the in-fighting between 国民党 and 民进党 in the name of democracy probably bears some blame as well.

Maybe the outflow of top-notch professionals and professors to China in search for a decent salary had something to do with this too.

The bottom line is this: Taiwan’s problem is structural and is deep-rooted. It has rocked Taiwan’s foundation and has affected Taiwan’s GDP growth. Everywhere we go, Taipei’s streets and shops are filled with well-dressed and fashionable teenagers and people in their 20’s and 30’s. The restaurants are crowed and busy. TPE airport is busy with tourist groups to China, Japan, Korea, other countries in Asia and Australia. The younger generation is spending their parents’ wealth because they can’t make it by themselves with Taiwan’s GDP growing at 2%. If Taiwan’s government is still sitting on its hands and if 马英九 is still fighting with his own party’s members, there will be more companies like HTC and Acer going down the drain. Jobs will be lost and confidence on the ruling party will be undercut too.

Maybe 马英九  should throw the government’s weight to help these tow companies. Just a thought.

 

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