Perhaps Nam Tai
Turning toward those results, we see that revenue was up about 15%, while margins fell considerably once again. Gross margins dipped below 10%, while operating margins are now courting 5%. And while many companies would probably be thrilled with 15% revenue growth, that's the lowest level I've seen since I started covering Nam Tai for The Motley Fool.
What's more, it appears to me that the company is moving toward lower-margin business prospects. For instance, it said it will soon manufacture its own flexible printed circuit boards -- a commodity market if ever there were one. While I can appreciate the virtues of securing internal supply, I'd much rather see Nam Tai pursue more high-margin electronics-assembly business.
Even though Nam Tai continues to produce cash, slowing growth and shrinking margins are not exactly chicken soup for the value investor's soul. That's particularly true given the presence of other, better-looking cell-phone plays like OmniVisionTechnologies
I've been a fan of Nam Tai for a while, and I've owned its shares a few times, but I'm not looking to buy right now. Maybe its current moves will prove wise over time, but I'm nervous when I see Nam Tai heading in the opposite direction from companies like Jabil
For more preassembled Foolishness:
Silicon Labs is a Motley Fool Stock Advisor selection. David and Tom Gardner chip in two new market-beating picks each month in their premium newsletter service. To see their current and previous selections, try Stock Advisor free for 30 days.
Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).