riddler5 Jan 2012 19:30
Thanks for that. I was coming to a similar conclusion; When I go back to wales on occasion we have a lot of modern factories which were as far as I am aware still empty and been that way for about 10 years. They were built by the Koreans to build memory chips. Some time back they started selling them cheaper than what they were made. They lost 100s of millions. Then closed up shop never to return. The factories are huge. Of course the products are a bit different but I do understand what over saturation means and waht the effects of dumping can do on stock.
The management in the last report did did bring forward its management statement explaining market conditions have deteriorated more severely than thought. So it is understandable why the share price has suffered.
Ideally, I would prefer to wait until prices and/or demand increases but then again if others do the the share price will already be higher in anticipation or effect of a turn in sentiment. They have closed a factory and some are on short time, which points to things being tough.
When the sector turns so will this. There could be some consolidation in the sector and or take-over. It looks cheap but there is a clear reason why that is so. Is it too soon? Thanks for your opinion...appreciated......hp