11.16.2001
Slashes '01 forecasts for second time

• STN-LCD play Wintek has announced a downward revision on ‘01 forecasts for the second time this year, mostly due to weaker sales and higher than expected investment losses. Sales fell by 11% to NT$4.96bn, versus our forecast of NT$5.1bn. Bottom line was pummeled to pretax losses of NT$132.6m (loss per share of NT$0.38), versus our NT$28m (NT$0.08 EPS) forecast. Wintek’s share price rallied recently, along with other handset stocks, on positive guidance from global handset giants Nokia and Motorola. We retain our Underperform rating on Wintek and recommend that investors Sell into Strength.