Actually Stoney - You now have follow thru on the digi-times article: Teco to buy stake in Syntax-Brillian By Jason Tan STAFF REPORTER Thursday, Aug 23, 2007, Page 11 Home appliance maker Teco Electric & Machinery Co (東元電機 yesterday announced that it plans to spend US$20 million to gain a 3.5 percent share in the US-based Syntax-Brillian Corp. The new investment was approved by the Taipei-based company's board earlier yesterday, Teco said in a filing to the Taiwan Stock Exchange. Shares of Teco closed limit-up at NT$17.20. Its shares have dropped 1.72 percent so far this month, but are up 0.59 percent since the beginning of the year. Teco's new partnership with Syntax-Brillian means that the company will be working with its homegrown rival Taiwan Kolin Co (歌林, which holds a stake of around 8 percent in the US firm. Kolin currently produces flat-screen TVs for Syntax-Brillian, which is known as the vendor of high-definition televisions behind the Olevia-brand liquid-crystal-display (LCD) TVs. The company also sells liquid crystal on silicon (LCOS) TVs in the US market. "The collaboration would be the first among Taiwanese home appliances makers, offering us a new business opportunity in the market," Teco said in the statement. The three companies would share resources including manufacturing, design and production, to bring local LCD television brands to overseas markets, the statement added. Teco's hope to increase its product presence in the North American market could encounter increased competition from Vizio, a brand from Amtran Technology Co (瑞軒科技. Both Olevia and Vizio brands are targeting the same customer base -- people who prefer spending less on flat-panel TVs. Based on the latest figures released by market researcher iSuppli on Monday, Vizio LCD TVs led the North American market with a share of 14.5 percent in the second quarter, up from 9.4 percent in the earlier three months, while Olevia TVs were No. 7 in that market with a share of 6.1 percent, up from 5 percent in the previous quarter. http://www.taipeitimes.com/News/biz/archives/2007/08/23/2003375520 But even with this news, I still fear the naked shorts who have control. Day Trades, sure, but I am not going to even swing trade it until I see massive covering.
Letter From The Desk Of the Supreme Being @ Digi Times. To Topdown. Dear Top. Take this! 06:57 ET Syntax-Brillian announces $20 mln strategic investment, three-way alliance with TECO and Kolin Co announces it has raised approx $20 mln in a strategic financing with Taiwan-based TECO Electric & Machinery. The investment comprises 3,083,945 shares of common stock priced at $6.4852 per share. In addition to the financing transaction, Syntax-Brillian, Taiwan Kolin Company and TECO have entered into a three-way alliance wherein Kolin will oversee the supply-chain mgmt and product development platform of various TECO branded products for distribution in Taiwan as well as other regions of the world that all three cos agree to enter. TECO will also provide supply-chain financing of up to $100 mln for the purchase of key components in support of Olevia branded LCD TVs.
You know folks, I am oh so close to making a last call train leaving the station announcement on this stock.... Look how we are pressing up against last weeks high today.... As we already know (BRLC) announced a major coup, an impressive alliance with TECO, raising not only 20 million dollars but also securing 100 million in supply-chain financing, representing a total investment from TECO of 120 million dollars. An investment that is equivalent to 20% of BRLC market cap. When a supplier is willing to put such large sums of money on the table just to do business with another company, it must mean Syntax Brillian must have something pretty special to offer. This alliance will offer immediate resources for the continued growth of the Olevia brand that has not been able to keep up with demand, while at the same time through TECO bring to the market an entire new line of exciting HDTV products and technology. Despite Olevias being sold faster then Syntax Brillian could finance their accounts receivables, iSuppli reports that Syntax Brillian narrowly missed outselling Sony (SNE) by 7,180 units last quarter!!!!!! Hello Folks> focus please. 7 thousand more TV's sold and little itty bitty BRLC outsells SONY. Hum I wonder what happens after this xmas? With only a mere 2% of the announced overall investment from TECO BRLC would would have dethroned a TV Giant. Now that BRLC has the full 100% investment from Teco in the form of 20 million in cash and 100 million in the form of supply-chain financing. In three months Olevia brand will outsell not only Sony, but perhaps Phillips and Sharp as well!!!!!!! The Olevia brand will soon be in Sears (SHLD) just in time for football kick off. This long awaited roll out, coupled with the strategic advertising with ESPN, should provide continued brand name recognition while at the same time allow Olevia to continue it's head to head competition against Tier one players. >On the quality side- Olevia's Consumer Best Buy ratings speak for themselves. I continue to believe that the Olevia brand will soon be seen in other major US retail brick and mortar stores such as Best Buy (BBY) in the fourth quarter of 2007. I know we have heard THAT ONE before but with a growing reputation for not only affordable HDTV products, but high quality and consumer satisfaction, Olevia can only continue its torrid growth here and abroad. Earnings will be released September 11th This stock offers immense upside potential. for the patient investor. ~ stoney
Earnings release after close 9/11. News from recent partnership: TECO to Set Up Plant in China to Produce LCD TVs 2007/09/10 Taipei, Sept. 10, 2007 (CENS)--TECO Electric & Machinery Co., Ltd., a Taiwan-based supplier of household electronics, is to build a new plant in China for the production of liquid crystal display (LCD) TVs, according to company sources. TECO`s new plant will be located near a LCD module (LCM) plant of the Taiwan-based AU Optronics Corp., one of the world`s leading suppliers of display panels, so as to take advantage of an integrated supply chain there. The plant is scheduled to start mass production in the second quarter of 2008, with annual production capacity of one million LCD TVs set for the first-stage construction plan. This will help TECO become the largest Taiwanese supplier of LCD TVs operating in China. In fact, TECO plans to take the new plant in China as its major export base for the global market, and as a foothold for further exploring the Chinese market. TECO noted the new plant will occupy a land area of 230 acres at the first stage of the construction plan, and the area will be increased to 500 acres at the third stage. Of the plant`s total annual output of three million LCD TVs, 80% will be for export and 20% for domestic sales in China. Not long ago, TECO, Taiwan`s Kolin Inc. and the U.S.-based Syntax-Brillian Corporation announced formation of a strategic alliance to integrate resources and reinforce cooperation among the three parties, aiming to better tap the global market for LCD TVs. Therefore, TECO becomes one of contract suppliers for Syntax-Brillian`s Oleveia-branded LCD TVs, and its new plant in China will play an important role in this regard. In view of a booming season at the end of a year, TECO will switch some manufacturing facilities of its Taiwan plant to the new plant in China, hoping to kick off production of the world`s hottest 32-inch LCD TVs as soon as possible.
Every fucking quarter this stock has disappointed. I won't expect anything different this time around. If it reports a good quarter with great guidance - only then will I buy some after the pull back. Actually, I don't expect this quarter to be different from the previous quarters which is to tank like a brick.