How Apple's Turnaround and Payback to Shareholders Relate To Actions Semiconductor

One stock that is the topic of much discussion is Apple Inc. (AAPL). The story of Apple’s turnaround and how it rose from ashes in 2002 was one of the most-talked about stories in the past 10 years, and the story of Apple’s decision to finally start paying a shareholder dividend is among the most talked-about stories this year.

Seeing the way revenue at Actions Semiconductor Co. Ltd. (ACTS) is growing again, and with the increasing likelihood of additional share buybacks, I feel a déjà vu between what’s happening at Actions Semiconductor and Apple’s turnaround and dividend stories.

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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.

A Safe And Lucrative Value Arbitration On Cutting-Edge Technologies

Stock Analyzed: Actions Semiconductor Co., Ltd. (ACTS)

Current Stock Price (as of May 2, 2012): $1.70

Arbitration Fair Value Assessment: $4.00 or higher

As mainly a value investor, I pay a lot of attention to companies with a strong business model that are below their current book value, such as E*TRADE Financial (ETFC). I also pay a lot of attention to stories of companies with valuable cutting-edge technologies that have seen their stocks depressed to multi-year lows because many companies in this situation are good acquisition targets or high-stake investments by other companies. The latest story of Microsoft’s (MSFT) $300 million investment in Barnes & Noble (BKS) is a perfect example.

Because of the big drop in share prices over the past two years, many Chinese small- and mid-caps fit both criteria and have seen their stock prices more than double this year when the market suddenly recognized the disparity between their stock prices and their intrinsic values. Dangdang (DANG), SmartHeat (HEAT), Recon Technology (RCON), Guanwei Recycling (GPRC), and Xinyuan Real Estate (XIN) are some good examples.

One company, Action Semiconductor (ACTS), boasts industry-leading, cutting-edge technologies, a top-notch management team, and the safest assets on its balance sheet, but it is still totally overlooked by the market and sitting at probably the lowest ratio of market capital to book value I have ever seen.

Read full article on SeekingAlpha.

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.