AUO valuation thoughts?

AUO looks like it is trading pretty cheap, Has anyone investigated AUO? I don't see a major catalyst to find the price to trend upwards in the near term unless a big company like AAPL decides to start using them as a supplier for screens.

I am trying to figure out if this a cheap stock or if its a value trap. So far I can't find any major issues with the business.


  • I own 100 shares, I would probably double or triple up no problem, I got in around 3.90 or 4 dollars about 6 months ago. I think this is the lowest multiple stock in the acquirer's multiple screener followed by LG display at 2nd for some time. Very solid company, recent upgrades have moved up the price but still quite cheap. They do screens with solar panel manufacturers and mall kiosk displays as well. Nice dividend but keep in mind it is paid annually and there would probably be extra withholdings as it is based out of Taiwan. There has not been huge growth in the company recently and as with any hardware or manufactured good there is usually lower margins than software or service type business but still really cheap stock to earnings and cash flow etc. There is also the threat of disruptive technology but they seem to have a fair amount of IP. If they get an apple contract that would be pretty big. The risk seems pretty low and the multiples are crazy cheap.
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