With OIIM trading close to cash & ST investments of $120.1 million and cash & ST/LT investments of $136.2 million, I see the OIIM common as effectively a free warrant on the general LED lighting business, which is expected to ramp with named tier-one partners starting this year (see CC transcripts). The general LED market is enormous.
Meanwhile, OIIM trades for only ~0.77x tangible book value and 1.12x sales. Also, the patents provide some potential hidden value in a takeover situation. Room to cut SG&A expenses if needed.
Maybe one day they will get rid of the ADS structure and trade on the Nasdaq? That would help increase the visibility and investment access for certain funds, as this one is already pretty under the radar as a microcap.
Past faults aside, OIIM looks like a buy here, even if/while Europe implodes. Margin of safety high plus good LT growth potential. Target price $8-10 in 2 years, in my opinion.