HOORAY! 3 Cheers for Chartered Semiconductor
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Singapore's Chartered Semiconductor raises Q4 profit forecasts
SINGAPORE : Singapore contract chip maker Chartered Semiconductor Manufacturing (CSM) on Friday raised its profit forecast by six million US dollars for the fourth quarter due to better-than-expected orders.
The revised forecast means profit in the December quarter will likely be 11-21 million dollars, up from the previous estimates of 5-15 million dollars, the world's third biggest contract chip maker said in a statement.
For the fourth quarter, Chartered now expects revenues of 363-371 million dollars, up from the previous forecast of 355-363 million dollars.
"Consistent with higher revenues, our fourth quarter net profit is now expected to be approximately six million dollars higher than the mid-point of the range previously guided," chief financial officer George Thomas said.
Analysts said the company's revenues were boosted by strong sales of Microsoft's Xbox 360, the latest game console from the US software giant. Chartered is one of two chip suppliers for the game console.
"We believe CSM's optimism for its fourth quarter is largely premised on the production ramp up of Xbox 360 CPUs (central processing chips)," OCBC Securities said in a note to clients.
"Following the launch on November 22 in the US, Microsoft's latest game console was wildly popular and was sold out quickly at most US stores shortly after its debut," it said.
The profit upgrade boosted Chartered's shares, which were up one cent at 1.34 Singapore dollars by mid-morning. - AFP /ct -
HAHA. I pick 20 lots at 96cents earlier last month.
LAst DOne: $1.34
Maybe I will dump at $3.
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Wow!...u can quit poly liao...earn money by playing shares..
I bought stamford tyres at 47.5cents...now at 49.5cents. Gonna hold for another 5 or 6 months more.
Hey shade343...how much did ur mum give u to invest?..or are u using ur own savings?...my mum gave me only 10k...let me try try.
sian.. -
$3??...wah..u so optimistic ...the stock market is so unpredictable..
My dad has singland shares...it peaked at $6.10 couple of months back, but he refused to sell cos he greedy..now its 5.10..lost 300k in paper profit..he very sad. haha -
I use both my mum's and my money.Originally posted by industrie:Wow!...u can quit poly liao...earn money by playing shares..
I bought stamford tyres at 47.5cents...now at 49.5cents. Gonna hold for another 5 or 6 months more.
Hey shade343...how much did ur mum give u to invest?..or are u using ur own savings?...my mum gave me only 10k...let me try try. sian..
She keeps 90% of the profits though.
Hmm, Maybe I shld try forex trading... -
I say Sing Land shares are somehwat a bargain now. Their shares are below NAV. And who knows? Maybe Wee cho Yaw might buy up that company....Originally posted by industrie:$3??...wah..u so optimistic ...the stock market is so unpredictable..
My dad has singland shares...it peaked at $6.10 couple of months back, but he refused to sell cos he greedy..now its 5.10..lost 300k in paper profit..he very sad. haha -
WOW...ur mama is so cunning!..Take 90% profit!!..HAHA..then ur pocket money how??...if ur stock earn money..ur mum got say 'boy boy...today i dun give u money cos ur share price go up.. '??
Yah..NAV of singland is about 5.50 i think. Hopefully the price go up to 6 plus.
I think the economy for first half of 2006 will be good, assuming no major terrorist attacks or SARs happen. Am positve dat the stock market's bull run will continue. Wat do u think? -
I think you shld sell away your entire portfolio 1 day before elections. Let the bird flu period begin....Originally posted by industrie:WOW...ur mama is so cunning!..Take 90% profit!!..HAHA..then ur pocket money how??...if ur stock earn money..ur mum got say 'boy boy...today i dun give u money cos ur share price go up.. '??
Yah..NAV of singland is about 5.50 i think. Hopefully the price go up to 6 plus.
I think the economy for first half of 2006 will be good, assuming no major terrorist attacks or SARs happen. Am positve dat the stock market's bull run will continue. Wat do u think?
My dad is the one that gives me pocket money not my mama.
Did you know that quite a number of our lecturers also got buy shares?... -
Am not surprised dat some of our lecturers buy shares too. But not sure who?...Let me guess... Ng weng fai?..Does he teach u?...Who are the lecturers who buy shares too?
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Oh...i have a feeling dat yeo huang kiat, tan shia tew, soh chee meng, tan siu huang play the stock market. Am i right?.. Am just guessing, they seem like the type who do.
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Mr yeo is my lecturer.Originally posted by industrie:Oh...i have a feeling dat yeo huang kiat, tan shia tew, soh chee meng, tan siu huang play the stock market. Am i right?.. Am just guessing, they seem like the type who do. He is a very good lecturer. Yup, he is also an investor.
Mr Koh also got play shares.
eh....we getting of of topic....use PM to chat k? -
PM sent.
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Dont be too greedy with CS share, just play around that 1.00 to 1.30 margin and you will make good money. $3.00...I think you have to wait long long. when was the last time you read that CS is investing in new plant and technology? I think they are a old hack liao...Originally posted by shade343:HAHA. I pick 20 lots at 96cents earlier last month.
LAst DOne: $1.34
Maybe I will dump at $3. -
WTF....Why one stupid bank downgrade the stock?
Today still trading at $1.25...
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hey dude, dont be too optimistic with CS, sell and cash out first. buy when it hit 1.10 again...Originally posted by shade343:WTF....Why one stupid bank downgrade the stock?
Today still trading at $1.25... -
By right should $3 by now lor. Dunno why Investors so stupid. Keep pushing down the price. This company should make big money from the Xbox 360...Originally posted by Gazelle:hey dude, dont be too optimistic with CS, sell and cash out first. buy when it hit 1.10 again... -
without xbox 360 factor, the stock price would have been 1.00 liao.Originally posted by shade343:By right should $3 by now lor. Dunno why Investors so stupid. Keep pushing down the price. This company should make big money from the Xbox 360...
furthermore once the new playstation hit town, xbox sales will slowdown.
I am personally concern about CS ability to invest in new technology. they have not been doing any major investment for a long time. then again, temasek might be able to do miracle. -
Do you think Temasek Holdings will leave CS in the lurch?Originally posted by Gazelle:without xbox 360 factor, the stock price would have been 1.00 liao.
furthermore once the new playstation hit town, xbox sales will slowdown.
I am personally concern about CS ability to invest in new technology. they have not been doing any major investment for a long time. then again, temasek might be able to do miracle.
I expect CS to be $3 by 2008....that is assuming bird flu doesnt strike singapore and the PAP wins the next elections. -
The garmen has noble idea is to turn singapore into wafer hub by attracting overseas wafer fabs to setup plants here.
But investment point of view CS was ever rarely profitable. The stock has plunged ever since it IPO from $20+ all the way to less than $1
The biggest disadvantage CS has is their killing overheads, they have so many plants and require to employ so many thousands and can ill afford to have unutilized manufacturing capacity. It's like a huge overweight cow that has outlived it's usefulness eating more grass than producing milk, almost every year it's either bleeding red ink or needs to issue rights shares to raise funding. In contrast I think TSMC and UMC fare much better.
This is what I mean by not investing in companies that require to spend huge $$$$ to run their operations. In bad times these costs can be a killing liability and the stock price will be floundering. I think one way out is they sell a controlling stake to a reputable competitor and let them run the show plus give some tax incentive, that way the goal of having regional wafer hub here still maintains. -
But they are asset heavy. And in the future, prospects for them might be bright. Assuming that demand for Xbobx 360 continues to rise in Q2 2006, the company would be able to make a proft.Originally posted by KumSioJui:The garmen has noble idea is to turn singapore into wafer hub by attracting overseas wafer fabs to setup plants here.
But investment point of view CS was ever rarely profitable. The stock has plunged ever since it IPO from $20+ all the way to less than $1
The biggest disadvantage CS has is their killing overheads, they have so many plants and require to employ so many thousands and can ill afford to have unutilized manufacturing capacity. It's like a huge overweight cow that has outlived it's usefulness eating more grass than producing milk, almost every year it's either bleeding red ink or needs to issue rights shares to raise funding. In contrast I think TSMC and UMC fare much better.
This is what I mean by not investing in companies that require to spend huge $$$$ to run their operations. In bad times these costs can be a killing liability and the stock price will be floundering. I think one way out is they sell a controlling stake to a reputable competitor and let them run the show plus give some tax incentive, that way the goal of having regional wafer hub here still maintains. -
In the 1st place, CSM has never made any full year profit since 1981 when it started.. What's more the share price now is just a fraction to its high time price
So what cheer is this? -
You must not forget that are other competitors around, so many if you were to count. Furthermore I think CSM was started as sort of a catalyst company to grow the industry here into what it is today also to provide employment demand for people with semiconductor skills & background. That's good but I think now with so many competition is best they leave it to the real experts to carry on.Originally posted by shade343:But they are asset heavy. And in the future, prospects for them might be bright. Assuming that demand for Xbobx 360 continues to rise in Q2 2006, the company would be able to make a proft.
This is not the first time they dabble in such industry, previously micropolis hardisk company also opened 3 plants then floundered in the end also close shop. Not to critise anybody but in the first place I don't think they have the right mix of people with solid industry experience within their senior management ranks.
Semiconductor industry is a very fluid industry. I ever kanna outsourced to seagate before and I can tell you the way they work is very nimble and can respond to changes .. many changes very fluidly.
They are also very forward in their thinking, planning. They will often look ahead 3-4years from today whats going to happen and accordingly will make changes now to preempt those expectations or problems to stay ahead of their competition. And they will often review those plans over and over and if need be finetune those plans to suit the changing environment. -
technology asset depreciate over time. once its dinasour technology, it will be just as good as a display in the national museum.Originally posted by shade343:But they are asset heavy. And in the future, prospects for them might be bright. Assuming that demand for Xbobx 360 continues to rise in Q2 2006, the company would be able to make a proft. -
operating a semicon industry is like running a F1 team, whoever have the biggest budget for R&D and investment will win.Originally posted by KumSioJui:You must not forget that are other competitors around, so many if you were to count. Furthermore I think CSM was started as sort of a catalyst company to grow the industry here into what it is today also to provide employment demand for people with semiconductor skills & background. That's good but I think now with so many competition is best they leave it to the real experts to carry on.
This is not the first time they dabble in such industry, previously micropolis hardisk company also opened 3 plants then floundered in the end also close shop. Not to critise anybody but in the first place I don't think they have the right mix of people with solid industry experience within their senior management ranks.
Semiconductor industry is a very fluid industry. I ever kanna outsourced to seagate before and I can tell you the way they work is very nimble and can respond to changes .. many changes very fluidly.
They are also very forward in their thinking, planning. They will often look ahead 3-4years from today whats going to happen and accordingly will make changes now to preempt those expectations or problems to stay ahead of their competition. And they will often review those plans over and over and if need be finetune those plans to suit the changing environment. -
that too, but your mgmt must careful of cost overruns.Originally posted by Gazelle:operating a semicon industry is like running a F1 team, whoever have the biggest budget for R&D and investment will win.
At when I was at seagate it was around the time when the IT boom was in full rage but funny thing was they were retrenching, closing plants in singapore opening up in batam and malaysia. I think any other manufacturing company would have thought seagate was nuts and done the reverse even I was puzzled, retrenching when business was hot? They should be recruiting.
But as we all see 1-2yrs later the fallout up to today, I guess they were positioning themselves, lowering their manpower overheads in advance for such a likelihood. Now thats what I call forward planning.