The share issue is really just a first step, an indispensable step, in the recovery process. The big question now is what is it going to do with the chip, TV and appliance businesses.
It's going to be an uphill battle. They don't have a brand name or much economies of scale.
They benefited from strong demand for flat-panel TVs during the holiday season sales period and other external factors, but it will still take some time for them to be truly competitive.
If makers don't invest now it basically means they are giving up on the game. It's kind of like poker. But there is no way all of the TV makers will end up happy. At some point in the future, overcapacity will emerge and there will be a shakeout.
These are pretty moderate plans. There could have been some investors who had expected more drastic measures from the new foreign CEO.
These are pretty moderate plans and they came within the realm of expectations.
Securing the funds is easing concerns of default and other risks. The gains are unlikely to last because there aren't any signs yet that earnings are recovering. You need money to restructure and all they have so far is the barest of necessities.
This is an extremely positive result, easily outstripping expectations.
