Chartered Semiconductor Manufacturing Ltd. (Chartered) continued to report losses at the net level in 2Q 09, in comparison to profits last year. However, the company reported strong net revenue growth and reduced losses on a sequential basis, beating consensus estimates and Management guidance. Management expects continued demand strength in the coming quarter and has guided for a further sequential improvement in top-line. Although the company continues to guide for a net loss…

On 30 April 2009, Chartered Semiconductor Manufacturing Ltd. (Chartered) had announced the consolidation of every ten shares held for one share, effective from 21 May 2009. Subsequently, we are adjusting our target price for the ADR to incorporate the effect of share consolidation. Although the near term outlook for Chartered has improved due to strong demand from China and inventory restocking, we remain concerned about the…

Chartered Semiconductor Manufacturing Ltd.’s (Chartered) ADR experienced a further significant single day appreciation of 28.1% on 17 April 2009, following the 20.3% gain on 16 April 2009 (as discussed in our company news alerts dated 17 April 2009). The trading volume on 17 April 2009 was 786,793, compared to an average daily volume of approximately 58,002 over the last year. In view of the significant price appreciation we believe the ADR is overvalued…