Actions Semiconductor Is Finally Moving, But Does It Have Legs?

After being dormant for a long time, Actions Semiconductor Co. Ltd.'s (ACTS) stock finally began moving on January 8, 2013. Since then, the stock has had a pretty good run. So as an investor, I am asking: now what? Does this upward movement have legs or will it fade away just like past flash bursts?

Financially, the company did turn its bottom line from red to green in the last quarter, but that result is nothing close to splendid as the third quarter is traditionally the company's strongest. In fact, Q3 2012 was a rare occasion when the management team did not actually meet its revenue target. Table 1 shows the company's revenue, gross profit, and net income for the past 10 reported quarters.

Read my full article on Seeking Alpha.

Is it finally time to short U.S. Treasury Bonds

I wrote an article last February expressing my bearish view on U.S. treasury bonds when the 10-year Treasury yield was at about 1.9%. I did not actually bet against treasury bonds at that time because, technically speaking, the upward momentum for treasury bonds was still very strong. As for NFLX, my major shorting bet in 2011, shorting against a stock/bond close to the top of the hype is a tricky and dangerous maneuver because it is hard to know where the exact long-term top of the stock/bond is and when the stock/bond will reach that top. In addition, the situation in Europe was still very dire at that time, which could have provided additional support for treasury bonds. My concern turned out to be real, and the 10-year Treasury yield continued to slide to an all-time low of just below 1.4% and has climbed steadily since. It has now gone a full cycle back to about 1.9%.

See my full article on Seeking Alpha.

Taiyuan in Shanxi hikes natural gas price for the first time in 5 years

On 8/24/2012, Taiyuan in Shanxi hiked residential natural gas price for the first time in 5 years. The increase of 7.6% was very large compared to similar adjustments in gasoline and diesel prices. Read the full news here: http://news.szenergy.biz/news_10546.html

This last development has the following positive implications on Longwei Petroleum (LPH):

1. This indicates that demand for fuel energies is strong in Shanxi province, particularly in Taiyuan metropolitan. It also indicates that growth in supply is probably limited and cannot satisfy growth in demand.
2. It means that economy in Taiyuan area is doing very well and consumers are not slowing down in consuming more energy. Note that Shanxi’s yearly GDP growth rate has been higher than national average by significant extent for the past 15 years.
3. Because natural gas is a competition to gasoline and diesel (i.e. gasoline/diesel and natural gas are alternative goods for many people), under economic principal higher natural gas price will decrease sales volume of natural gas and increase sales volume of gasoline and diesel in the area.

In conclusion, with this last development, the outlook for Longwei’s revenue growth is brightened further in my opinion.

 

Disclaimer

I am a completely independent analyst and am not paid by any company of which the stock I cover or write articles about. However, I may have long or short position on a stock I cover or write about at any time.

My ratings and/or analyses of a stock only represent my personal view on the stock and/or my assessment on the probable movement of the stock price in the next 12 months. They are by no means a guarantee of performance on any long or short trades on a stock and should not be relied upon solely for buying or selling a stock. Every investment, no matter how compellingly appealing it seems, involves risk. Investors should do their own due diligence and consider personal risk tolerance, preferences and needs when making an investment or a trading decision. All materials are subject to change without notice. Information is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed.

Profit From Treasury Bonds And Oil Producers In This Election Cycle

One of this autumn’s biggest news headlines will be the result of the U.S. presidential election, as it will have a profound impact on that nation and the world because the two candidates and their respective political parties have totally different philosophies about how to run the U.S. economy and many other important issues.

Read my full article on Seeking Alpha.

Disclaimer

I am a completely independent analyst and am not paid by any company of which the stock I cover or write articles about. However, I may have long or short position on a stock I cover or write about at any time.

My ratings and/or analyses of a stock only represent my personal view on the stock and/or my assessment on the probable movement of the stock price in the next 12 months. They are by no means a guarantee of performance on any long or short trades on a stock and should not be relied upon solely for buying or selling a stock. Every investment, no matter how compellingly appealing it seems, involves risk. Investors should do their own due diligence and consider personal risk tolerance, preferences and needs when making an investment or a trading decision. All materials are subject to change without notice. Information is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed.

Seeking Alpha in Chinese Company's Privatization Spree

On August 14, 2012, an article on Yahoo Finance discussed recent privatization deals by Focus Media (FMCN) and Fushi Copperweld (FSIN). I found the information intriguing and thought-provoking. As a mid-cap company, Focus Media probably has better access to large capital infusion and could therefore strike such a big privatization deal. Nonetheless, the offer price of more than 20 times its trailing EPS is still quite amazing. For Fushi Copperweld, the buyout price is not cheap either at more than 13 times trailing EPS. That’s why Fushi’s buyout offer was only about 45% over its stock price before the announcement. For a smaller company trading at less than three times training EPS, a reasonable buyout can easily be more than 100% of its stock price before the announcement.

Read full article on Seeking Alpha.

Disclaimer

I am a completely independent analyst and am not paid by any company of which the stock I cover or write articles about. However, I may have long or short position on a stock I cover or write about at any time.

My ratings and/or analyses of a stock only represent my personal view on the stock and/or my assessment on the probable movement of the stock price in the next 12 months. They are by no means a guarantee of performance on any long or short trades on a stock and should not be relied upon solely for buying or selling a stock. Every investment, no matter how compellingly appealing it seems, involves risk. Investors should do their own due diligence and consider personal risk tolerance, preferences and needs when making an investment or a trading decision. All materials are subject to change without notice. Information is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed.

ETrade's Last Move Hinted Consolidation for Online Brokerage Industry

E-Trade (ETFC) announced today that its Board of Directors has fired CEO Steven J. Freiberg and is searching for his replacement. In the news release, the company said that the move was to “transition the role of CEO to a new leader to guide the Company through the next phase of its evolution.” That sounds exciting, but exactly what drastic changes can or should the company make to increase shareholders’ value?

Read my full article on Seeking Alpha.

Disclaimer

I am a completely independent analyst and am not paid by any company of which the stock I cover or write articles about. However, I may have long or short position on a stock I cover or write about at any time.

My ratings and/or analyses of a stock only represent my personal view on the stock and/or my assessment on the probable movement of the stock price in the next 12 months. They are by no means a guarantee of performance on any long or short trades on a stock and should not be relied upon solely for buying or selling a stock. Every investment, no matter how compellingly appealing it seems, involves risk. Investors should do their own due diligence and consider personal risk tolerance, preferences and needs when making an investment or a trading decision. All materials are subject to change without notice. Information is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed

The Lesson Learned From Actions Semiconductor's Q2 2012 Results

Actions Semiconductor Co. Ltd. (ACTS), reported its second quarter 2012 results on August 7, 2012. The results were close to my estimates in my previous article about the stock.

Read full article on Seeking Alpha.

Disclaimer

I am a completely independent analyst and am not paid by any company of which the stock I cover or write articles about. However, I may have long or short position on a stock I cover or write about at any time.

My ratings and/or analyses of a stock only represent my personal view on the stock and/or my assessment on the probable movement of the stock price in the next 12 months. They are by no means a guarantee of performance on any long or short trades on a stock and should not be relied upon solely for buying or selling a stock. Every investment, no matter how compellingly appealing it seems, involves risk. Investors should do their own due diligence and consider personal risk tolerance, preferences and needs when making an investment or a trading decision. All materials are subject to change without notice. Information is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed.