Thursday 24 November 2011

HTC shares plunge 7%.

Apple @ $366.99, - $9.52 (-2.53%)

Not sure how to read this:- http://www.bbc.co.uk: HTC shares plunge after revenue forecast cut. apart from negatively, with a probable read across to my holding in Apple but HTC the fast moving Taiwan based manufacturer of smartphones released a profits warning yesterday which saw its shares fall by 7%, the maximum daily fall allowed by the Taiwan stock exchange.

The company had previously been forecasting 20-30% growth in revenues but is now guiding markets that growth will be flat.
Despite previous guidance on slowing growth in this quarter the news apparently caught analysts completely by surprise and the shares have been punished as a result. 
The company are predicting a return to growth in the first quarter of 2012 but, how hard have/will they be punished as the Taiwan stock exchange appears to manage a daily allowance of 7% falls. Not sure just how that works but I am guessing that they suspend the shares.

"Analysts said the grim outlook could be blamed on lack of new products to compete with an expansion in Apple's distribution channels in the US."  http://www.bbc.co.uk: HTC shares plunge after revenue forecast cut.
Slightly bemused by that statement as HTC famously churns out new models and upgrades by the bucketload.

But I am still assuming that there will be some negative read across to Apple and other smartphone manufacturers (HTC have been prolific producers of critically acclaimed products) but difficult to split this out from the generall falls with the market due to EU contagion fears.

On the upside Christmas is coming we just need the Apple stores' tills to be ringing or ringtoning.

Related articles:
- http://www.bbc.co.uk: HTC shares plunge after revenue forecast cut

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