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Actions Semiconductor Co., Ltd. Message Board

  • ultima70 ultima70 Jan 19, 2012 5:35 PM Flag

    earnings out - shame on this company

    - revenues at lower end of guidance

    - gross margins far below guidance

    - new guidance of revenues down 20-25% qoq

    - stock buyback only 600k shares for the quarter

    while the company is trading at only 2/3 of cash and marketable securities there is simply no reason to buy the stock as product sales have been disappointing for a very long time now

    even worse ACTS has slowed its buybacks in recent quarters (with the stock getting cheaper and cheaper) and obviously does not plan for a special dividend or an accelerated buyback

    so at some point some people might ask if the touted cash balance is still for real

    would take this loss and move on finally

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    • They bought back more shares this quarter than last quarter, so I don't see how you can say that buybacks have slowed.
      That they were able to buy back over 600k shares on such low volume without driving up the price is remarkable and I think will be a coup for patient shareholders.

      • 1 Reply to EvanMacDonald
      • Today, day after quarterly data, the volume is very low. No sellers into this bad numbers. I expected ten times the volume today as many people could have tired of this malaise. ACTS seems unable to grow sales. Q3 was $15M and one could think that they finally started up with sales. $15M is not much but an improvement. Q4 down to $12M and guiding Q1 to $9-10M. This looks bad and I have no explanation why their sales are that low. ACLS would do better just shutting down all operations and making money on their $220Million cash pile. At least they would be profitable. This has been going on for four years. How dumb is this?

    • I am sorry for your losses with this POS but I can explain to you how a "cash rich" chinese company functions: the cash may be real but those who control this company consider the company money as their money. They are doing the following things:

      - buy back few shares to calm down shareholder anger
      - pay part time staff to pump the company in the internet (for example this message board)
      - to use the money to buy other chinese companies with inflated prices.

      How does it work? Here is the scheme:

      - You control a cash rich company A and your friend just founded a small company B. You contact your friend and agree to buy his company, for let say, $1 M and both of you declare publicly (in your balance sheets) that company B has been sold to company A for $10 M. The auditors will approve your balance sheet as the transaction costs are, on the papers, $10 M. Your friend will give you back $9 M and you bring him into your company in a high position (CEO ?)
      So you will get $9 M and an ally in the company top management

    • The only reason the buyback has slowed is because the maximum amount they are able to do is based on the daily volume, and volume has been quite low. I do wish they'd go ahead and do a dutch tender or dividend though. I keep expecting someone to come along and buy them out for the cash, and sooner or later that will happen if this continues. There's no reason to believe the cash isn't real at this point, and they are audited by the largest accounting firm in the world.

      It would be silly to sell at this price, but that's up to you.

      Q1 is typically the slowest quarter.

      I would really like to see them get into chips for cell phones which is a much larger market than mp3 players. Even a few % of that would be huge.

    • Plus the new CEO has no experience running a profitable company. He ran the R&D shop ACTS bought out a while back....all research and no profit. He seems to be continuing the tradition.

    • Thanks prik, just waiting to get the go ahead from you.

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