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 Notion

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skiddtrader
post Feb 12 2012, 12:05 AM

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QUOTE(twyeoh @ Feb 11 2012, 07:11 PM)
The recovery is about to begin.
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I agree. All HDD manufacturers will have a big jump in profits this coming quarters due to the sudden spike in HDD component prices due to supply constraints after the Thai floods. Furthermore, HDDs now costs almost double their pre-flood prices in the market. Based on Seagate and WD command of the majority of HDD supply, and their determined efforts to paint the HDD sectors supply problems, HDD prices are going to stay high for next few quarters. Since it is now a sellers market.

Notion Vtec problems were initially 2 fold because the Thai floods not only affected their HDD business but also their camera components business. Luckily their Thai operations are still in it's infancy and most of the manufacturing operations are shifted to their main plant in Klang according to their latest announcement. Excess capacity in their plants are also fully utilised as Thai floods caused most other factories to close.

They announced 2012 will be a double digit growth year compared to 2011.

Edit: I would still caution investor's of Notion to take their Managements word with a pinch of salt because of the previous fiasco regarding their profit 'misguidance' to the public.

This post has been edited by skiddtrader: Feb 12 2012, 12:06 AM
skiddtrader
post Feb 18 2012, 12:08 PM

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OSK research has a SELL call on Notion a few days back. They are not convinced Notion will profit from the HDD component increases because they are not involve in those component manufacturing.


Attached File  Notion_Vtec_Recovery_May_Take_Some_Time_20120213_OSK.pdf ( 115.68k ) Number of downloads: 9


This post has been edited by skiddtrader: Feb 18 2012, 12:10 PM
skiddtrader
post Feb 22 2012, 04:48 PM

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QUOTE(kiwi_cream @ Feb 21 2012, 07:36 PM)
why quarter report show negative the share price still naik one?  shakehead.gif
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Because stock market is future looking, although last quarter shows a negative result due to provisions during the Thai floods, the future is looking brights because production is ramped up by their suppliers to cover the Thai operations. Higher component prices due to shortage after Thai floods also having an impact on future profits.

Regarding the bonus and warrant issue. Looks like they are need money after their private placement did not go through. This 2nd warrant issue basically screws the holders of current warrants which can't be exercised due to high conversion price. Makes sense that their owners are disposing the warrants at the moment.

 

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