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Actions Semiconductor Co., Ltd. (ACTS) Message Board

  • nero2005 nero2005 Feb 3, 2010 8:07 PM Flag

    ACTS: Cash cow

    " The Company ended the year with $87.8 million in cash and cash equivalents together with time deposits. Marketable securities, current and non-current, were $163.8 million at the end of the year."

    That's $251.6 million total, divided by 75.8 million weighed-average ADS shares equals (trumpet call) . . .

    $3.31 per share of cash, cash equivalents, time deposits and marketable securities.

    Nearly $1 of hidden value built into every share of ACTS. ACTS is down to $2.35 in after hours trading. If it remains there during normal trading hours Thursday, I'll be backing in for a boatload.

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    • I give you a lesson in investing for free.

      • 1 Reply to hung_than
      • <<I give you a lesson in investing for free. NEVER BUY A STOCK WHICH IS ILLIQUID>>

        The good news is that your lesson is worth exactly what we paid for it. Nothing.

        First off, ACTS is not an illiquid stock. It trades a fair number of shares every day. It's no citigroup, that's true. But it has plenty of liquidity.

        Second, illiquid stocks are sometimes very profitable investments. By definition they tend to be underfollowed which makes their pricing inefficient. Inefficient pricing equals potential opportunity.

        I own one stock that traded twice last year in the pinks. Not two days, mind you, two TRADES, one of which was mine. It trades more frequently on its primary exchange in London, where it's up about 16% in US dollar terms since I bought it 6 months ago. Illiquidity is not a problem for long-term investors.

    • The Q4 $1.1 million loss is a pittance. Using their cash hoard, ACTS could stay in business for 57 years losing a $1.1 million every quarter. Someone smart (and greedy) will find an easier way to pry open ACTS pocketbook and turn this sleepy company into the powerhouse it deserves to be.

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