Friday, June 29, 2012
Hi-P: is +3.2% at $0.805, amid buoyant market sentiment, despite major customer Research In Motion (RIMM) reporting a big quarterly loss and saying its next smartphone, which it has bet its survival on, won't be ready until next year. But the market may have already anticipated any earnings hit to Hi-P. Lim & Tan Securities notes RIM's problems started more than a year ago and have already negatively impacted Hi-P's results, with 1Q12 net profit down 91%. Notes Hi-P is counting on new products from Apple and new customers such as Amazon and Nike to help mitigate the weakness from RIM and expect their diversification efforts to be more apparent in 2H12. Keeps a Buy call. The stock's week-to-date peak of $0.835 likely offers a near-term cap.