HTC share price reel­ing from Mon­day blues

The China Post - - TAIWAN BUSINESS -

Testing the newly ex­panded daily move­ment limit on the Tai­wan Stock Ex­change, HTC ( ) shares on Mon­day tum­bled by 9.91 per­cent or NT$9.2 to close at NT$83.6, while for­eign in­sti­tu­tional in­vestors dumped about NT$9.16 bil­lion (US$295 mil­lion) worth of Tai­wanese stocks dur­ing the ses­sion.

About NT$13 bil­lion worth of the hand­set maker’s mar­ket value had van­ished into the void at the end of Mon­day’s ses­sion, as in­vestors re­acted to a dis­cour­ag­ing up­date slash­ing its sales fore­cast by 30 per­cent, and foreseeing losses of NT$8 bil­lion over the sec­ond quar­ter.

The dis­ap­point­ing news was un­ex­pect­edly is­sued late last Fri­day evening.

Fol­low­ing a share­hold­ers’ con­fer­ence held last Tues­day, HTC shares were on the decline through­out last week, and closed at NT$92.80 last Fri­day. Shares had once stood as high as NT$1,300 on April 1, 2011.

Mean­while, fol­low­ing a re­quest by Fi­nan­cial Su­per­vi­sory Com­mis­sion Chair­man Tseng Ming-chung (

) to look into the com­pany’s fil­ings, Chien Lih-chung a se­nior ex­ec­u­tive vice pres­i­dent at the Tai­wan Stock Ex­change said that it is pos­si­ble that the com­pany had with­held the di­min­ished sec­ond quar­ter guid­ance from share­hold­ers last Tues­day be­cause the fig­ures had not re­ceived the ap­proval of the com­pany’s board of di­rec­tors.

Re­leas­ing such in­for­ma­tion to share­hold­ers with­out the board room’s ap­proval runs the risk of in­sider trad­ing vi­o­la­tions, Chien ex­plained, adding that HTC’s fil­ings will be au­dited.

The FSC chief main­tains that HTC is a “highly re­spectable brand.”

In­ci­den­tally, HTC Chair­women Cher Wang ( ) had pledged to uti­lize a more cre­ative mar­ket­ing strat­egy with its limited bud­get, which is of­ten dwarfed by their ri­vals with up to 20 times the war chest.

On its of­fi­cial Twit­ter page, the com­pany last Satur­day un­veiled pic­tures of a 24-karat gold limited edi­tion of it’s One M9 flag­ship to cel­e­brate the end of the UEFA Cham­pi­ons League sea­son.

CNA

HTC Corp.’s ( ) stocks tum­bled hard again yes­ter­day by the max­i­mum 10 per­cent to NT$83.6 (US$2.69). For­eign bro­ker­ages an­nounced slash­ing the price tar­get for HTC shares on HTC’s first trad­ing day af­ter an­nounc­ing it would lower its sec­ond quar­ter sales fore­cast, which could re­sult in a net loss for the cell­phone com­pany.

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