OPTI Message Board - Msg: 1286120

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Microcap & Penny Stocks : OPTI

OPTI 0.00150

+15.4%

Nov 7 2:27 PM EST

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To: dlc who wrote (244)	4/28/1997 4:47:00 PM
From: dlc	of 482

One more point to keep in mind. Opti has cash of more than $4.50 per share and tangible book of more than $7.50 per share. Long-term obligations, debt service, leases, etc. are almost non-existent. The $7.50+/share is real assets, no goodwill or inventory write-ups here. At today's closing price of 4-7/8 by 5-/18, the company is trading at an enterprise value below minus $2.50/share (market value minus book value). It lost a few cents in each of the past two quarters and may lose a few cents in the next quarter. The price-to-sales ratio is around 0.6. Revenues from the new chipsets (Vendetta, Firestar) and the new audio chip (935) are expected to pick up in Q3 and Q4. Why anyone is selling at barely 2/3 of tangible book and pennies above cash when the worst that can happen is a loss of a few cents per share for the next quarter or two is a mystery to me. The upside is that the new chips are popular OR the company decides to maximize shareholder value through some other means. When the stock is way below tangible book and barely above cash, you have lots of low-cost options to help the shareholders. It may take some time for buyers to catch on, but it is a very low-risk, high-reward trade. Does anyone know of any other tech stocks with more-or-less breakeven earnings that trade well below liquidating value?

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