If you have done your demand supply extrapolations accurately, and you need funds for investment in additional infrastructure to raise production to raise revenue, and the home country is dry, look abroad for the money. Luckily you live, work and party in a globalized world today.
Obviously, you need to bet on the newest products that are on sharp ascendancy mode.
1. Chi Mei Optoelectronics Corp., Taiwan's second-biggest maker of liquid-crystal displays, is considering selling more shares overseas to help expand production of screens used in television sets.
2. The company may sell shares to raise the estimated $3 billion needed to build a new LCD factory to make screens measuring at least 50 inches diagonally.
3. Chi Mei will continue raising funds through syndicated loans.
4. Its focus on larger screens, which are driving demand for televisions, may help improve profit as sales of LCD TVs outpace other types of flat-panel technologies.
5. Chi Mei and other producers in the $70 billion industry have delayed expansion plans to ease global oversupply of screens, helping drive up prices of some panels.
6. Given that there aren't new factories coming into supply in the rest of the year and the first half of next year, panel makers' margins should improve.
7. Asian companies are drawn to the American or global depositary receipt market, which typically has a deeper pool of investors than their home countries. Chi Mei is likely to consider an ADR sale after the first half of next year.
[Click here for full story at: BLOOMBERG.COM]
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