Wednesday, October 13, 2010

Actions Semiconductor Co., Ltd. (ACTS)

UPDATE: read my follow-up to this post here.

I'm going to have a look at the reports tomorrow, but from what I've gathered so far, ACTS appears to be a steal.

Current Price: 2.10
Shares: 86M
Market Cap: 180.6M
Cash, A/R, & Investments: 230M
Total Liabilities: 12M
Net Current Asset Value: 218M

Which means, ACTS is currently trading at 0.828 of net current asset value.

More on the plus side: although steadily decreasing, operating income and free cash flow have been in the black for at least 5 years, 3 years of stock buy-backs, and they do not appear to be taking on new debt in order to finance their declining revenues.

My reservations so far: I haven't been able to see YTD financials yet, revenues have trailed off steadily (significantly) over the last 5 years, and the company had a net loss for the first time in 5 years in 2009. Not sure what's up there.

I'll post again when I've had a chance to check it out further.

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