Hang in there Strato. The guidance update will be out in Feb and...

Hang in there Strato. The guidance update will be out in Feb and if NTC reconfirm their profit estimate we are sitting on a stock with a P/E ratio of 3 - 5 times. If you look at NTC's larger competitors, i.e. NetGear, Novatel Wireless, etc, you will see P/E ratios of 10 to 15+. NTC is also able to compete with the big boys on their turf and take market share. NTC are doing well to be still turning a profit whilst incurring the costs of their international expansion. The market is growing and there is no signs of it slowing down. Once the developed countries are saturated NTC still have the developing countries to explore. If you look at the 2011 guidance of some of the competitors, the outlook is very good. I think NTC just need 2 years of consistent results and the market will get some confidence back in this stock. Evaluting the risks, competition is fierce, R&D can be expensive and the USD exchange rate is always an issue. I still see NTC revisiting $0.50+ if they post a favourable 2012 guidance in June 2011.

On a slightly different topic, I was thinking about the future of mobile communication. Mobile internet access in the future will be as common as mobile phones are today. iPhones and iPads are a sign of things to come and any device that makes sense to be connected to the net will be. So how is this going to happen? Will the devices have the communications built it or will they rely on a external device? If the communications is built into the device, NTC is screwed. Mobile networks are going through rapid development and need to get to speeds of 5 to 100 times faster than today. As the development progresses does it make sense to incorporate the communication technology into devices? Or, should we rely on external devices like the MiFi or MyZone?

Interesting times ahead.