The recent sell off is the result of poor Q1 2012 results. Most likely only a short-term fluctuation.
The Company's earnings and cash flow have been fairly good since IPO with any swings resulting from changes in working capital items. This is why the Company hasn't really used its IPO funds. The main concern is inflation in the Vietnamese market. This is what's driving up overall costs such as COGS and squeezing their margins. The Company should try to pass these increased costs on to their customers.
The Company will be tapping into its cash reserves to build its new facility which will likely be completed this year or next. This is one of the reasons the dividend is a lot lower this year than past years. After completing the facility, you may see the dividend increased back to historic levels. Based on the estimated cost of the building, the overall cash position of the Company shouldn't be impacted too heavily.
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