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
Read my full article on Seeking Alpha.
Wednesday, January 16, 2013
Posted by Kevin Chen, CFA & MBA at 11:18 AM
Friday, January 11, 2013
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.
Posted by Kevin Chen, CFA & MBA at 11:14 AM