08.24.2001
Ambit trading at attractive levels

• Development: With about 60,000 stock dividend share contracts to be released today, together with rumors suggesting that ADSL modem shipments in August will be below expectation, Ambit’s share price yesterday dropped around 5%.

• Analysis: We believe the current price level has already factored in most of the bad news. Moreover, Ambit claims that August still has a chance to post the highest monthly revenue results of the year.

• Primasia View: The company is trading at a P/E of 21x. We consider this an attractive valuation given the likely future benefits from the impending broadband boom in Asia.