Hon Hai Precision Industries Co Ltd (HNHPF)

[GEW]

If you recently bought a few shares of Hon Hai Precision Industry Co. Ltd. (TWSE: 2317 TT) - aka Foxconn - you might be getting a little surprise soon...

Trading has been temporarily suspended on the Taiwan Stock Exchange (TWSE) until Friday, October 26. (This isn't the surprise.)

"Why? What's going on?" you ask.

Foxconn is undergoing a capital reduction of about 20%.

What's a capital reduction?

A capital reduction is when a company decreases the amount of shareholder equity through stock cancellations or repurchases. While Foxconn's market capitalization won't change, the number of shares outstanding and available to trade will be reduced.

As reported by Bloomberg, Foxconn said in May it would be taking this action to increase shareholder value and improve its capital structure. Same market cap with fewer outstanding shares means those shares - your shares - will be worth more.

That's great news for existing (and future) shareholders!

Plus, existing shareholders will receive a $0.06 dividend per share held as part of the capital reduction. (Surprise!)

[bar1080]

Hope no one bought this as his "only retirement stock." Been falling steadily since the pump a few months ago.

[WallStreetCash]

Trump joined Foxconn CEO Terry Gou, Wisconsin Gov. Scott Walker and other officials in Mount Pleasant, Wisconsin, to break ground on the new $10 billion electronics manufacturing plant. He hailed Gou as "one of the great businessmen in the world" and said that Foxconn is working with 26 local Wisconsin companies to build its main facility.

Foxconn is the Chinese company that assembles most of Apple's iPhones. The 20-million-square-foot factory will produce LCD displays and employ as many as 13,000 people, officials said in the initial announcement by the White House nearly a year ago.


Now playing: Foxconn breaks ground on first US factory
1:33
"As Foxconn has discovered, there is no better place to build, hire and grow than right here in the United States," Trump said Thursday. "America is open for business, more than it has ever been open for business."

The ceremony comes at a touchy time for the US and China thanks to tariffs and a brewing trade war. While Foxconn has committed to investing here, a Wisconsin-based company, motorcycle maker Harley-Davidson, has drawn Trump's ire for its intention to move some of its manufacturing to Asia. At the same time, Trump has helped Chinese telecommunications maker ZTE get out of a devastating ban levied upon it by the US Commerce Department.

"Harley-Davidson, please build those beautiful motorcycles in the USA, please," Trump said Thursday. "OK. Don't get cute with us. Don't get cute."

The new Foxconn factory is not without its controversy. To secure Foxconn's commitment, Wisconsin added nearly $1 billion on top of an existing plan for $3 billion in financial incentives, according to The Wall Street Journal.

A spokesman for Foxconn couldn't immediately be reached for comment.

US investment
Foxconn has suggested for some time that it would expand in the US. In 2012, a spokesman for the company told Bloomberg it was "looking at doing more manufacturing in the US because, in general, customers want more to be done there."

Such plans don't always pan out, however. In 2013, Foxconn said it would invest $30 million in a Pennsylvania factory and create 500 jobs. But as noted by The Washington Post and the Associated Press, the facility was never built.

Trump spent the bulk of his time Thursday talking about tariffs on products like steel and aluminum, the US tax cuts and the demise of President Barack Obama's Affordable Care Act, three major initiatives undertaken by Trump and the Republican-controlled Congress.

SEE ALSO
Apple to invest $30 billion, add 20,000 jobs over next 5 years
Apple's Tim Cook dishes on taxes and the demise of money
Trump will back laws restricting Chinese investment in US tech, says report
"I have a lot of respect for China. It's great," Trump said. "But we lost $500 billion over the last number of years, $500 billion a year. We helped rebuild China. Someday they'll say thank you, but we don't want to do that anymore. We want a fair and balanced situation."

Trump on Thursday also praised Apple for its plans to invest more in the US.

"Apple is spending $350 billion," Trump said. "I would have been happy with $350 million. But they're spending $350 billion on plants, building an incredible new campus."

[WallStreetCash]

And your point is?

[bar1080]

That news is from four months ago. The stock has only fallen since then.

Has many elements of a well organized pump and dump.

[WallStreetCash]

OSAKA -- Sharp on Monday completed its purchase of Toshiba's personal computer business, looking to revive the operation by slashing costs via the extensive procurement network of Taiwanese parent Hon Hai Precision Industry, or Foxconn.

With this, Sharp re-enters the PC arena for the first time since discontinuing the Mebius brand in 2010.

The Japan-based manufacturer obtained 80.1% of Toshiba Client Solutions for about 4 billion yen ($35 million). Kiyofumi Kakudo stays on as president and CEO. Yoshihisa Ishida, a Sharp executive vice president, has been appointed chairman.

Sharp plans to rebuild Toshiba Client Solutions, which sustained an 8.3 billion yen operating loss in fiscal 2017, by cultivating markets abroad and taking advantage of Foxconn's procurement prowess.

As the world's largest electronics-manufacturing services company, Foxconn has many production sites across China and churns out such information technology equipment as servers for American tech companies.

Tai Jeng-wu, a Foxconn transplant who leads Sharp as chairman and CEO, said after the deal was announced in June that the business would turn profitable within a year or two, allowing Sharp to recover its investment. He said the operation should focus for that time on the Japanese market, where the Dynabook brand is strong.

But in late September, dealers at a briefing in Guangdong Province were informed that the PC lineup under Toshiba Client Solutions will expand rapidly in China.

Sharp aims to lift overall sales by 34% from fiscal 2017 levels to 3.25 trillion yen in fiscal 2019. But though Sharp's earnings have improved since its August 2016 purchase by Foxconn, the recovery faces difficulties ahead. Sales of liquid crystal display televisions in China -- which had driven revenue growth -- have slid.

Ishida, who led the latest deal, said Sharp will work with 400 engineers of the Toshiba business to create synergies in "internet of things" technologies.

Japanese electronics manufacturers have been forced out of PCs by intense price competition from Chinese players. The past several years have seen NEC and Fujitsu give up on running the operations on their own, switching to joint ventures with Lenovo Group. Sony has spun off its PC business, known for the Vaio brand, by selling it to an investment fund.

[Dinvestor]

Just curious.. if Foxconn started an IPO in the states, would the HNHPF shares on the Taiwanese market move over there? Example, if I had 50 OTC shares (100 because each share is 2X), would that move or mirror to NASDAQ with same amount?

[Rockhall]

Fidelity wouldn’t let me buy it on the OTC, even over the phone.
They only would let me buy the Taiwanese version with currency exchange, not the OTC HNHPF in US dollars.

[CashKing67]

What's the deal with Alexander Green, there was a video of him promoting this stock saying it'll be like buying Amazon, something to that extent. He said by October 16th there would be some event where it'll take off and there'll be news of how this company has 29,000 patents with major U.S. companies like Apple, Sony, Nintendo, etc... Not sure what to believe

[Power of Emouna]

On otcmarkets.com it shows O/S to be 17.3B for HNHPF not 1/2 of 17.3B? But good point makes sense should be 1/2 of that since it's 2 shares of HNHAF for each shares of HMHPF. Guess they didn't adjust on the otcmsrkets.com site. Thanks

HNHPF SECURITY DETAILS

Additional Securities
Share Structure
Market Cap
86,287,862,400
10/05/2018
Authorized Shares
Not Available
Outstanding Shares
17,326,880,000
12/31/2016
Restricted
Not Available
Unrestricted
Not Available
Held at DTC
Not Available
Float
Not Available
Par Value
No Par Value
Market Value calculated only for respective security
Transfer Agent
Citi
Shareholders
Not Available

[jdjlaw]

Thanks didn’t consider that. My mistake. Still like it for the upside.

Jdjlaw.

[Rockhall]

The O/S is 17.3B common Taiwanese shares
(or around 8.65B shares of HNHPF ADR equivalent)

Market Cap is around 43B USD

[fsantes]

Thank you for sharing that!!!

[Ticktock4141]

https://asia.nikkei.com/Business/Companies/Backed-by-Foxconn-Sharp-returns-to-PCs-with-Toshiba-unit-purchase

[jdjlaw]

I’ve been in for about a week now. Hugh upside potential. $12.5 B market cap and 2.5 B outstanding shares. No institutional interest yet that I can find. It looks like there is resistance at $5.16 I think the last week or so when it bounces off it rebounds back. Thoughts?

Jdjlaw

[catty]

Stocknut: 2 cents profit, call it a wash. haha

[Stocknut]

I already took a a$$ whipping!!! I sold today and am looking into MJ which is HOT!!!! GLTA

[Stocknut]

I don't blame you!!! Pure garbage.... Take your profits if any!!!!

[catty]

I'm out. There are better stocks to buy

[catty]

bar: I'm starting to agree

[bar1080]

Using Google, I find the earliest connection between The Oxford Club and Hon Hai was back in early July. Not much of a pick since the stock has sold off since then. Perhaps a new round of pumping started recently, around the time this board was started.

So many red flags with this. I certainly would't touch it. GL

[catty]

bar: thanks. I'm on top of it. When the pumping stops, I'm out.

[bar1080]

So much in that video is misleading. Virtually none of the other firms mentioned were ever penny stocks or even low priced. For example, MSFT IPO'd at $21 a share (in 1986). Google IPO'd at $85.

Clearly this is being hawked to unsophisticated newbies. The seminar format alone should be ample warning of the flim flam. Why is the stock dropping even as the broad market reaches new highs?

[Power of Emouna]

As per article the projected revenues for this company as early as 2019 to be 164 billion USD dollars. Apple is trading at $225.74 with revenues of approximately 229.2 billion USD in 2017. Apple's share structure compares to HNHPF, 4.83B outstanding shares compared to 17.3B outstanding shares 3.53 times less shares then HNHPF. $225.74/3.53 = $63.94/share. We don't know how many of the 17.3B shares are restricted. But it's safe to say the stock could attain around $50 minimum or higher by early 2019 by analysis comparison to Apple. Looks like HNHPF is a fast growing company. Looks like the potential is great here. I didn't buy any shares yet but looking to buy in near future. GLTA! HNHPF

[Power of Emouna]

Read this article amazing DD on the stock. He says it all!!

https://pro.oxfordclub.com/p/PLANTO99OXFLTOXFDSMALAGBBRK/LOXFU9FJ/?utm_source=IOCLICKS&utm_medium=cpc&utm_campaign=1519&utm_term=investorshub.com&utm_content=1575&&&h=true

[catty]

Power: thanks. Any feelings about the stock?

[Power of Emouna]

The equivalent ticker on US markets is HNHPF. The Taiwanese ticker is HNHAF.

On the Taiwanese market, it is around 2.80 USD per share, but these are US ADR shares for easier access to US investors.

Each share of HNHPF represents (2) common shares of Hon Hai/Foxconn.

[bar1080]

I not impressed after reading this:

https://www.reuters.com/article/us-foxconn-wisconsin-fears/audits-show-lax-oversight-by-wisconsin-agency-counting-foxconn-jobs-idUSKBN1AR23Z

[catty]

bar: hope it's not a pump and dump. will be on top of it

[bar1080]

Was wrong about infrequent trading. Looked at a different series. Pretty clear that this has been heavily traded since late-july (or perhaps front loaded) for some time:

[bar1080]

Can't think of any riskier reason to buy a stock than because an obscure "newsletter" is pumping it. Pretty clear that almost no one here knows much about this foreign firm, or the complex legal structure of the US shares.

I especially question anything the includes "Reg S." Plenty of posters on Yahoo are aren't impressed with this company's history.

First I wonder why this ADR trades so infrequently if the company is so huge. Red Flag perhaps.

Will be following along.

[catty]

bar: as far as I know it can be bought and sold, at least at Ameritrade

[bar1080]

Amazing, people buying foreign stocks they don't understand. Unit of currency in Taiwan is the Taiwan Dollar. I presume the Reg S refers to US Regulation S for stocks sold offshore.

Can this be SOLD currently, or just bought?

[catty]

Power: I was also advised that it sold for about $3, yet I Paid $5.14. Could the $3 price be their currency?

[catty]

Rockhall: I bought HNHPF directly from Ameritrade yesterday - it was put thru immediately and the spread was only 1 penny which is unusual for an OTC stock. (If u wanna purchase put in a limit order.) However I paid $5.14 and no mention of the 2 for 1 shares. You should check you broker. There are other ways to buy the stock, but it was too complicated for me.

[Power of Emouna]

Apple has 4.829B shares 1/4th the amount of O/S shares this stock yet trading @ 225$. If this stock gonna be way bigger then apple. Then perhaps still justifies buying at price of 5.25$ $HNHPF

[Rockhall]

I agree, yet it’s the largest corporation in the country of Taiwan.

Have my eyes on this, but not invested yet.

Hard to do DD on foreign corps.

Very low profit margin and huge SS is what’s currently keeping me on the sidelines.

[Power of Emouna]

O/S: 17.3B shares looks pretty steep don't you think?

Additional Securities
Share Structure
Market Cap
89,070,559,328
09/26/2018
Authorized Shares
Not Available
Outstanding Shares
17,326,880,000
12/31/2016
Restricted
Not Available
Unrestricted
Not Available
Held at DTC
Not Available
Float
Not Available
Par Value
No Par Value
Market Value calculated only for respective security
Transfer Agent
Citi

[Power of Emouna]

Thanks for clarifying!! $HNHPF

[Rockhall]

Yep, one in the same.

On the Taiwanese market, it is around 2.62 USD per share, but these are US ADR shares for easier access to US investors.

Each share of HNHPF represents (2) common shares of Hon Hai/Foxconn.

[Power of Emouna]

Is this the stock this article refers to? If so I was told should be trading around $3?

https://www.stockgumshoe.com/2018/07/microblog-alexander-green-says-you-can-retire-on-a-3-00-stock/

[catty]

ticktock just bought in. Recommended highly by Oxford Communique

[GEW]

Recent Investor after much research. This is a 10 year play and has huge potential for growth IMO

[Stallion4life38]

Hi there. I'm new to this board. I havent heard much about this company. I was just wondering if you guys can shed some incite on this company. I know its a huge tech company, but just wondering why the PPS is so cheap.

[Ticktock4141]

https://www.investegate.co.uk/hon-hai-prec-ind-co--hhpd-/rns/fit-to-acquisition-of-belkin-by-way-of-merge/201809210700025167B/

[WallStreetCash]

THE COMPANY: Foxconn, also known as Hon Hai Precision Industry Co., is the world's largest contract maker of electronics, with factories across mainland China. It's best known for making iPhones and other Apple devices but its long list of customers includes Sony Corp., Dell Inc. and BlackBerry Ltd.

iPhone-maker Foxconn to open Wisconsin plant expected to create as many as 13,000 jobs
AMERICAN EXPANSION: A new U.S. plant will bring Foxconn closer to its biggest market. "TV was invented in America," Foxconn Chairman Terry Gou said at a White House press conference. "Yet America does not have a single LCD factory to produce a complete 8K system. We are going to change that," he said, referring to the latest generation in TV picture clarity, offering four times the resolution of high definition TVs.

[WallStreetCash]

Thank you. A lot swirling around with HNHPF. I also bought in, success is my only option.... Regards

[Ticktock4141]

Yes, welcome! I just recently invested in this on speculation and rumor of some big coming up. Please share your inside and knowledge of what you know to inform other investors. Keep it positive and work together for everyone's success.

[WallStreetCash]

Good buy in price, the company certainly has a lot going on....

[WallStreetCash]

Interesting company, Foxconn is huge, thanks for opening this forum....