Watch the video with Andrew Stotz or read Watching the Street: Taiwan below.
Consensus Recommendations: Taiwan
Analysts haven’t had very positive recommendations on Taiwan for the past few years, and Taiwan currently has the most negative recommendations in Asia.
This may be a product of the nation’s slow growth. The economy is expected to grow by just 1% in 2016.
Voss Capital is betting on a housing market boom
The Voss Value Fund was up 4.09% net for the second quarter, while the Voss Value Offshore Fund was up 3.93%. The Russell 2000 returned 25.42%, the Russell 2000 Value returned 18.24%, and the S&P 500 gained 20.54%. In July, the funds did much better with a return of 15.25% for the Voss Value Fund Read More
Among companies with positive recommendations, Taiwan Paiho produces different kind of tapes and has seen a share price gain of 30% YTD.
Even though mobile devices producer HTC’s share price has lost more than 90% since its ATH in May 2011, analysts remain negative and don’t expect a turnaround.
Consensus Earnings Estimates: Taiwan
Consensus EPS growth estimates have decreased since 2012 and actual EPS growth has also fallen since 2013. The estimate is now at 7%, unchanged from August 2016.
Egis Technology produces fingerprint sensors used in mobile devices and has seen a share price gain of almost 70% YTD.
Innolux is the third largest panel (LCD, OLED, etc.) manufacturer in the world. Analysts expect the company to post a loss in 2016 due to weak demand.
Consensus Target Prices: Taiwan
The target price expected return over the next 12 months is at 7% vs 4% in August. Analysts seem to have turned more positive soon after TAIEX’s 5% gain in the past three months.
Among companies with the highest estimated upside, PharmaEssentia’s drug P1101, used to treat a rare blood disorder called Polycythemia Vera, is expected to hit the market in 2017-2018 and drive earnings.
The four companies with the lowest expected return are in the information technology sector. Keep in mind though that information technology accounts for 46% of the total market capitalization in Taiwan.
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DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.