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Strategies & Market Trends : Value Investing

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From: Elroy1/23/2016 9:22:56 PM
   of 75876
Here's a high tech "value" stock that might be worth a look.

OIIM - O2 Micro

They are a fabless semiconductor maker, about $50-$60 million per year in sales, gross margins around 50%.

They are big in semiconductors that go into hardware like saws, tools, etc. Their sales have been struggling for the past few years. They are trying to get into backlighting for cell phones, perhaps, we'll see.

The main reason it is a "value" stock is they have $55 million cash (last quarter, probably down a bit in Q4 2015), no debt, and the market cap is about $32 million.

If business stabilizes or turns around, the stock could do well. If not, you can hope that management will wise up and sell the company at some point, they should be worth at least $55 million to a larger semiconductor company that can rationalize the business and keep the cash.

They buy back a bit of their own stock each quarter.

No idea whether sales will turn around, but it's a good one to watch, if this kind of thing turns around it's easier to get a 2x-4x bagger out of it. And if not, the cash provides some downside cushion.


Founded in April 1995, O2Micro develops and markets innovative power management components for the Computer, Consumer, Industrial, Automotive and Communications markets. Products include LED General Lighting, Backlighting, Battery Management and Power Management.
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