I'm not going to deny that ACTS is absurdly cheap here, and spiking to $2.35 wouldnt surpirse me; but that CEO couldnt give two craps about shareholders. Instead of making some small attempt to reign in their ungodly R&D spending, he goes out and buys a business segment of a company..thats just about to go out of business. And they buy the biz not for any product or operation value, but to gain access to its pool of eingineers for more R&D. So he pays millions of bucks extra to hire a bunch of engineers who would have been on the dole in a couple of month.
If this was some large company, making decent money, with expansion plans....ok, I can accept that. But profits are not on the horizon. How can they be when they spend so much on R&D? Maybe they'll come out one day with a pr stating that they can now successfully turn lead into gold...thats the kind of pr I'm hoping for with their research spending.
The acquisition that you're talking about, and we don't know if it's been finalized or not, is only $2 million dollars. A tiny gamble, and if it works it gets them into a new product segment -- chips for low end android devices. I assume that the other engineers they're hiring are also oriented around new products that we don't know the specifics of. It would be stupid of them to publicly tell all of their new product plans.
mp3 and multimedia chips are a cheap commodity business, so finding new product segments and entering new markets is a smart move. With the number of new engineers they've picked up in the past year or two, I assume they're planning something big. Also, note that the CEO has only had the position for 11 months now.