HTC share price reeling from Monday blues
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.
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.