Nam Tai Electronics
For example, Nam Tai puts together calculators for Texas Instruments
Nam Tai is nowhere near as large as Apple's
Shares rose 6% after this morning's third-quarter report. At first glance, that doesn't make any sense: Earnings fell 88% year over year to just $0.02 per share and missed analyst estimates by $0.04. Sales fell 14% to $147 million -- following a string of quarters with 58%, 78%, 104%, and 30% annual revenue growth. That looks a lot like a stalled growth engine, does it not?
But Nam Tai is knee-deep in a dramatic strategy shift. Some high-margin products with very small markets are falling by the wayside as the company builds two new factories to focus on making LCD panels for smartphones and tablet computers. Based on negotiations with as-yet unsigned customers, Nam Tai sees sales doubling in 2012.
Nam Tai also raised its quarterly dividend by 40% thanks to a strong cash position and those tremendous growth prospects. That makes for a very generous 5.6% dividend yield at today's prices. All told, I'd say that Nam Tai deserved this price jump.
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Fool contributor Anders Bylund holds no position in any of the companies mentioned. The Motley Fool owns shares of Texas Instruments, Apple, and Nam Tai. Motley Fool newsletter services have recommended buying shares of Apple and Nam Tai, as well as creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.