Even if someone does value the business at nothing, which would be silly, at this cash level it's free money.
I was a little surprised though to hear that they are planning to build a new headquarters for $20 - $25 million to take care of all the new engineers they are hiring. I hope we see some new interesting products with the increasing headcount.
If you say ACTS should trade at the $2.36 cash per share, then the actual business is worth . . . nothing? There are plenty of stocks in the red with little cash and huge debt and the stock has still retained value.
So what's the problem here? No problem at all, it's the bargain of a lifetime that the market has failed to properly value. Buy up shares and simply wait for the market to correct this aberration. When ACTS is profitable again it will soar. Even if it is a couple of years, the cash ensures ACTS durability and continued competitiveness.
Well, with the speed the series 13, 11 and other new business lines are gaining steam, the way the company is buying back shares (if you think the 12 millions additional purchases announced in January on top of 8 millions the management team did in 2008 was end of it, wait until you see what they tell you tomorrow), and the degree this stock is unduely under-valued (still only about 60% cash per share BEFORE the 12M reduction in shares), I am not sure if the pause of run up is anywhere in sight.
I posted in the stock was in 1.6x that the management team would announce in the last week of April about the ER date in the first week of May. I also said that they were going to publish news on new busines developments.
Ok, fine. Keep on waiting or selling. Like I should care. I am just here to share what I know with the community and what I think the value of the stock should be (3.5+ minimum). Don't know what I did wrong about this.