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Today I feel crazy: I will buy far East tech like AUO AU Optronics Corp. and maybe even HOKU Hoku Scientific, Inc. April 27, 2006

Posted by deminvest in growth stock, HOKU Scientific, investment, My investing mistakes, Single stocks, stock I own, stocks.

I will do that, but please don't follow me on this. AUO is a Far East high tech company that makes LCD panels. It is cheap and even grants some not to bad dividends: Trailing P/E: 18.79 Forward P/E: 8.70. It even offers a juicy dividend yield over 2%, which is not common for such high tech companies. Maybe price is so low because it is considered a consumer goods company and not a high tech one. In my opinion they develop new LCD technologies at such a fast pace and they invest so much in research they can be considerer a high tech company. It is so cheap for a high tech, that I am buying it as soon as finish writing this article. I also like the fact that I do understand AUO will make the technology which will allow me soon to replace the cubic TV monster in my house with a flat thin TV at a reasonable price. I am afraid I will not have the guts to buy the high tech little monster HOKU Hoku Scientific, Inc. form Hawaii. It makes technology for fuel cells, in complicated way that we, the people, will never really understand. It is horribly expensive: its Price/Sales of 16.96 and P/E of 47.52 are similar to Google, but its business model is far less strong and likely to succeed. They still have 20 M$ in their bank accounts, so they can invest in their strange technologies more and more money, specially considering they do even manage to make earnings. They have good contracts with Nissan, the Navy and Sanyo. It is good to be able to develop such futuristic technology, very useful in an oil deprived world. It is even nicer if a company like Hoku can do that making even some earnings. Maybe after all I will go for it.


1. Democratic Investments by the people for the people » (HOKU) Hoku Scientific was a big mistake, keeping it is a money suicide… - June 5, 2006

[…] … hich I will commit. I think I will keep HOKU. I will keep it because I am after all a proletarian investor. Unprofessional and sometimes I follow a wrong strategy even when I see it is wrong. I bought HOKU at $7 a month ago. I should sell it now at 4.2, but I can't admit to myself how wrong it was buying it. So I keep it hoping that for some magical reason it will go back at 7 and maybe arrive to 9. HOKU will not.HOKU produces "Proton exchange membrane (PEM) fuel cells". Do you understand what it means? I don't. That should have been a very good reason not to buy. There is an investment rule that I usually follow: "Don't buy what you don't understand well". Anyway I think those membranes are used to produce Hydrogen fuel cells. […]

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