Broadway slumped 19% post results

Broadway has slumped 19% since its results release on 27 Oct.
This was mainly attributable to results which lagged analysts' estimates; mgmt tepid outlook and lacklustre guidance from HDD bellwethers such as Western Digital and Seagate.
Nevertheless, according to consensus estimates, it is currently priced at 4.7x FY10F PE, coupled with a 3.8% dividend yield. It is also attractive as a potential M&A target with positive cash flow, strong global market share of actuator arms and low valuations. There is potential for Broadway to hike its 4QFY10 dividend too.
Some risks would include a larger than expected slowdown in HDD flowing to 1HFY11. Earnings catalysts in FY11 are less exciting than in FY10 as growth normalises for its non-HDD division.
Do visit my remisier blog ernestlim15.blogspot.com for a more detailed writeup on Broadway and other companies. I can be reached at crclk@yahoo.com.sg
Have a gd weekend.

Broadway's short-term outlook is no more sizzling. 4Q is seasonally a slow quarter and 1Q next year could be slow too.

The stock ’s valuation is cheap at below 5x PE, so investors could hold it ffor its limited downside and possibly good dividend yield.

Book value is $1.34 next year, so it's pretty ok.