I was getting a little bored of the old theme, and this one surely looks a lot better.
For RMIH’s 3Q results, I didn’t see any surprises there. I think it is on track this year, not sure why the market reacted so violently at the end on Monday. I don’t think it is a good idea to always draw out causal effects of all market movements. You should not pay so much attention to quarterly results, or even annual results for the veteran investors.
A few worries I have for RMIH
1. AUO is optimistic about AMOLED – “Wu also said he is optimistic about the use of AMOLED panels in smartphones from 2013-2014, stating that the technology is expected to start replacing LCDs. This will increase AMOLED penetration rate to 20%.” Well, this should not be a big deal really. Technologies change all the time, and companies have to adapt quickly or perish. I think RMIH is fully capable of transforming itself whatever happens when LED light bar demand drops for displays.
2. I am not sure after Lextar merging with Wellypower will increase competition for TSMT/RMIH. That is something I have to find out.
3. What about Chinese firms catching up to Taiwanese firms?
Problems are everywhere, but what should you do? Just sit tight and enjoy the ride.