Taitron Components, Inc. (TAIT) research, news, and more from GeoInvesting

Company description

Mon, 15 Apr 2013 04:00:00 GMT

Taitron Components Incorporated operates as a distributor of brand name electronic components, and supplier of original designed and manufactured (ODM) electronic components. The company distributes discrete semiconductors, including transistors, diodes, rectifiers, and bridges; optoelectronic devices, such as LEDs, infrared sensors, and opto couplers; and passive components consisting of resistors, capacitors, and inductors. At December 31, 2011, its inventory consisted of approximately 12,000 products manufactured by approximately 100 suppliers. The company also provides ODM components, which are manufactured electronic components based on its own engineering specifications under the TCI private label brand through manufacturing partners. In addition, it offers value-added engineering and turn-key services focusing on providing contract electronic manufacturers (CEMs) and original equipment manufacturers (OEMs) with ODM services for their turn-key projects. It serves smaller and medium-sized distributors, CEMs, and OEMs. The company operates primarily in the United States, Mexico, Brazil, Taiwan, China, and Canada. Taitron Components Incorporated has strategic alliances with Teamforce Co. Ltd., Grand Shine Management, and Zowie Technology Corporation. The company was founded in 1989 and is headquartered in Valencia, California.

Research

Mon, 24 Jul 2017 14:43:07 GMT

TAIT ($1.78) - While the Company has had little to no press releases and very little commentary in its filings, it continues paying its dividend and management continues buying back stock. Shares have doubled since our May 23, 2016 note where we stated we were tracking the company due to it reinstating its dividend policy. TAIT operates as a distributor of brand name electronic components, and a supplier of original designed and manufactured (ODM) electronic components. You can see our original note here.

Research

Mon, 23 May 2016 16:23:42 GMT

TAIT ($0.97) - TAIT operates in a low margin competitive business where growth prospects have been dismal since 2005. TAIT operates as a distributor of brand name electronic components, and a supplier of original designed and manufactured (ODM) electronic components.

	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005
REV	$5.7	$5.8	$6.2	$7.1	$6.8	$7.1	$5.5	$7.1	$7.5	$9.5	$8.4
EPS	-$0.11	-$0.21	-$0.17	-$0.14	-$0.11	-$0.07	-$0.17	-$0.14	-$0.25	-$0.01	-$0.04

Here are some comments from the 2015 10k that echo these thoughts:

ODM service providers have experienced rapid change and growth as an increasing number of OEMs outsource their manufacturing requirements. OEMs have continued to turn to outsourcing in order to reduce product cost; achieve accelerated time-to-market and time-to-volume production; access advanced design and manufacturing technologies; improve inventory management and purchasing power; and reduce their capital investment in manufacturing resources. This enables OEMs to concentrate on what they believe to be their core strengths, such as new product definition, design, marketing and sales. We believe further growth opportunities exist for ODM service providers to penetrate the worldwide market. By designing private brand products to OEM customers in the US, we are able to expand export sales to overseas CEM customers.

We will start tracking for one sole reason. On May 5, 2016 the company put a dividend policy in place.

On May 5, 2016, the Company’s Board of Directors authorized a dividend policy and declared an initial quarterly cash dividend in the amount of $0.025 per share of Class A and Class B issued and outstanding common stock. The dividend will be paid on May 31, 2016 to stockholders of record as of May 16, 2016. Under the dividend policy, the Company will target a cash dividend to the Company's stockholders in the amount of $0.10 per share per annum, payable in equal quarterly installments. Subsequent dividend declarations and the establishment of record and payment dates for such future dividend payments, if any, are subject to the Board of Directors' continuing determination that the dividend policy is in the best interests of the Company's stockholders. The dividend policy may be suspended or cancelled at the discretion of the Board of Directors at any time.

Since the company has operations in Asia we will consider performing some on-the-ground due diligence (OTGDD) to see if the implementation of dividend policy (currently 10% yield) is an indication that the company will soon be in a position to reach profitability.

We are not that excited yet since the company has paid dividends in the past: