Actions Semiconductor Co. (ACTS)

[fcpgalltheway]

Sorry to disappoint you but I hope the truth shall set you free!!

The company shares that are being traded on the OTC market represent ADRs which represent 6 common stock share per ADR. Right now there are 68.49 million shares of ADRs outstanding. Each ADR represents 6 common stock shares. Therefore, if you multiply 68.49 million times 6 you will come up with the total number of outstanding common shares...410,940,000.

Now if you take the present PPS of the ADR of $2.34 and divide that by 6 you will come up with the PPS of the common stock if it was traded as an individual share...39 cents per share.

Although the company has a lot of assets, it has also a lot of liabilities and according with the latest Schwab data they calculate the "Enterprise Value $-34.6M" (that is at minus 34.6 millions).

Remember that as the company buys back shares it uses cash assets that reduce the cash available. The company is making an effort to reduce the number of shares with the profits that it makes but right now it has no positive book value at all based on over 400 million shares outstanding.

My feeling is that the stock was pushed to the high level of $3 in a hurry by speculation of bigger things to come and possibly by pumpers, not realizing that all the big millions of assets have to be divided by 410,940,000 common shares!!