Nam Tai Property Shares More Than Doubled in May; Here's Why
Shares of Nam Tai Property (NYSE: NTP) more than doubled May 2021. Nam Tai's stock gained 110% last month, according to data from S&P Global Market Intelligence. The owner and manager of technology parks in China started this surge with a strong earnings report in the last days of April. The jump was amplified by an activist investor's ongoing attempt to reshape Nam Tai's boardroom and business strategy.
Nam Tai recorded first-quarter revenues of $69 million, up from just $0.7 million in the year-ago period. The bottom line swung from a net loss of $3.2 million to net income of $25.6 million. It's no surprise to see a stock rally starting on the heels of this impressive report.
However, the same report also provided support for alternative strategy ideas. The company's unwieldy amount of current and long-term liabilities made Nam Tai's auditors raise "substantial doubts" about the company's ability to continue as a going concern. A couple of large lease contracts made this quarter look good but didn't change Nam Tai's business prospects to any significant degree.
Source Fool.com
