We're posting up notes from the 2013 Value Investing Congress in New York. Next up are Carl Chen and Tom Lu of Temple Honor Asia (Taiwan). Their presentation was entitled "The World According to GARP Taiwan: Growth at a Reasonable Price." They pitched 2 ideas.
Carl Chen & Tom Lu's Value Investing Congress Presentation
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China Wireless Technologies (2369.HK)
Market cap $850M USD. Second largest vendor by sales of its
own brand smartphones. "Coolpad" 90% of sales through China's three mobile carriers. Dual SIM. Sole listed pure-play smartphone maker in China. One third
of share price is cash on balance sheet. He says, "not too many
people in China knows who Steve Jobs is."
MediaTek (2454.TW)
Fabless IC design house that makes SoCs
for mobile devices. Enables the
"white box" mobile device sector in China. Main competitor for QCOM. Lots of IP, major clients.
Says strong corporate
DNA. Growing market in China. Low debt. Upside of 23-28%.
Risks are competition by
QCOM and SPRD. Also clients like
Huawei develop in-house. He says
lowcost iPhone 5C is not a risk.
Be sure to check out the other presentations from the New York VIC here.
