Foxconn'S Overshoot Rebound, Insiders Say It'S Not A Good Opportunity To Catch The Bottom.

Terry Gou, chairman of Taiwan's Hon Hai group, Foxconn's series of crisis public relations has produced an immediate effect on the Foxconn share price in Hongkong.

With only 2 trading days, Foxconn resumed the recent loss of land with a cumulative gain of 11.67%. However, in the face of new news of the recent jump, analysts are still worried about the trend of Foxconn's future.

In May 25th, Foxconn had tenth staff jumping incidents this year, and the market was worried that the company's first quarter results might suffer losses. Foxconn shares were panic selling in the market, closing down 9.69%, setting a 7 month low.

The share price of parent company Taiwan Hon Hai group and its other subsidiaries was also affected, Hon Hai fell nearly 5%, Guangyu, Hong Jun, Jian Han and so on ended, resulting in the Hon Hai Department's single day total market value evaporating NT $91 billion 300 million.

Hou Chunhuan, an analyst with Guangdong securities, pointed out that under the background of the global stock market, which is full of European debt crisis and the pressure of export stocks being heavy, staff jumping events further triggered investors' mistrust of Foxconn management and gave the market an excuse to suppress Foxconn.

But after all, the position of its leader in the field of technology products can not be replaced for a short time, plus this year, the stock has fallen by nearly 40%, which is far higher than other shares of the same kind, and has certain valuation advantages. So nearly two days, it appeared overfall rebound under the promotion of bargain buying.

But Hou Chunhuan did not recommend investors to copy Foxconn now.

He pointed out that the European sovereign debt crisis is far from easing. As an export unit, its stock price is still hard to say. Although jumping events will not have a direct impact on the production and operation of the company, the pressure of public opinion may cause the company to have a potential risk of losing orders.

In fact, after the jump incident, a group of Hongkong demonstrators went to the Foxconn Hongkong office to urge consumers to boycott Foxconn's iPhone mobile phones and other products produced by Foxconn. Apple Corp also issued a public statement on Wednesday, saying that an independent panel has been set up to evaluate Foxconn's response measures.

Analysts pointed out that in the short term, the progress of staff jumping events has evolved into another important factor affecting the future trend of Foxconn beyond the European debt crisis.