Friday, January 9, 2009

TPC Stock Pick of the Day: ACTS

Hey guys, it's time for the TPC stock pick, so get out your pens and pencils, and let's do some math.

Actions Semiconductor Co., Ltd. (ticker symbol ACTS), is a Chinese based semiconductor manufacturer that has seen it's stock price fall from $4.40 down to $1.67 at the present time of writing.

Market Cap: $142.04 m.
Total Cash: $258.25 m.
Total Debt: $1.50 m.
Price/Book: 0.48
Trailing P/E: 3.17
Forward P/E: 15.45
Profit Margin: 40.71%
Operating Margin: 26.11%
Gross Profit: $59.71 m.
Qtrly Rev. Growth: 0.90%
Operating Cash Flow: $55.96 m.
Levered Free Cash Flow: $23.45 m.

ACTS really pops out to me simply because they have so much cash on hand. With over $3 cash per share, the $1.70 price tag per share seems like a steal, and it's always nice to see very little debt on a company's financial statement. While revenues aren't growing right now, the current state of the world economy means that a company that isn't seeing it's income shrink should consider themselves quite fortunate. The forward P/E suggests that while ACTS might not be a fantastic short term gainer, once sales pick up in a few years, this could be a very profitable investment.
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