RawGreed update, watching AU Optronics Corp.

Posted on December 5, 2005 , filed under Stocks | Print This Post

The market behaved much like I thought it would. It appears that investors were taking profits today. My portfolio closed moderately higher today, led by gains in TSM, Taiwan Semiconductor Manufacturing Co. Ltd. and UMC, United Microelectronics Corp. I expect shares of both companies to rise in December. Riding along with the theme of Taiwan’s improving economy, I added AUO, AU Optronics Corp. to my watchlist. The company is one of Taiwan’s largest LCD flat panel manufacturers. AUO was formerly known as Acer Display Technology, Inc. I like AUO at under $12. AUO recently reported a record 3rd quarter in revenue while improving margins. Long term I see margins diminishing rapidly as competing display technologies drop in cost. I see AUO making up for the decline in long term margins by increasing shipments. 2006 should be a record year for volume LCD flat panel shipments.

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2 Comments »

Comment by David Jackson

2005-12-06 03:05:59

2 things: (1) your blog is great, I’m now a reader; (2) the full AU Optronics conference call transcript is on Seeking Alpha — really worth reading. It’s here: http://seekingalpha.com/article/3683

Best,
David

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Comment by Andy

2005-12-06 03:34:34

Wow, thank you. It’s a real compliment that you read my blog. I’m a big fan of Seeking Alpha.

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