UT Starcom (UTSI). YTD Return (30%). Current share price: $1.36. Total cash: $305 Million (no debt). Market Cap: $211 Million. UT Starcom was once one of those sparkly companies, which generated so much growth it was featured as a “can’t” miss stock by analysts and financial magazines. It was based in Northern California, and generated double-digit growth in emerging markets with its inexpensive mobile phones and network that ran circles around its larger competitors. The competitors caught up and UT Starcom has had to retrench and focus on new markets involving IP TV (Internet Protocol TV) and broadband offerings in those same emerging markets. To get more in touch with those markets, UT Starcom moved its headquarters to Beijing, China, and does most all of its R&D work in China and India. Growth has been elusive over the past few years, but the past two quarters did feature profitable growth (35% revenue growth in the latest quarter alone) and a confirmation that it does indeed hold $305 Million in cash instruments and no debt. It certainly appears that its strategy is finally taking hold and even if margins remain weak, it serves a growth product in a growing market and it holds all that cash on its balance sheet.
Disclosure: I am long UTSI, MOTR, BVSN, ALU, RENN.