The stock price of Taiwan's biggest personal computer maker was hammered by investors last year on the weight of disappointing earnings reports and, at the end of the year, what analysts called a weak restructuring plan.
Based on a Taipei Times survey of four computer industry analysts, however, the book value of Acer Computer (
In short, if Acer were to sell off its sizable investment portfolio and all other assets -- including factories and manufacturing equipment -- then pay off all outstanding debt, each shareholder would net about NT$25 per share.
To be sure, Taiwan's stock market index fell 44 percent over the course of the year, halving the market value of a number of big Taiwanese companies. Acer, however, is one of the largest companies to see its share price fall so far under its book value. The company's stock closed out last year down nearly 80 percent from its high of NT$76.8.
Falling earnings prospects, revised profit forecasts and reduced OEM contract manufacturing orders have all contributed to the company's fall from grace in the eyes of investors.
The company's recent announcement to reorganize also failed to lift market confidence. Analysts did, however, say the measures were a step in the right direction.
Acer Computer has long had the problem of operating both as an original equipment manufacturer (OEM) manufacturer, putting together personal computers and notebooks for customers such as IBM, and as a brand name business. Acer brand personal computers and notebooks, in turn, have created friction with OEM customers.
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