This is an innovative technology company with leading products in Wifi and RF power management that is used by Samsung in the Galaxy S3 and is approved by Qualcomm for interface with their processors. The shares were around $5 a year ago, but are now languishing at around $1.20. The shares have dropped to the point that they about equal the cash in the bank. Basically the story is that their previous CEO messed up with Qualcomm, so that they did not get into that years designs, and so have lost over 12 months revenue potential, damaging their revenue stream and tanking the shares. The new CEO has rebuilt the relationship but it takes time for this to come through into real revenue.
Buying Anadigics is a very high risk, but the share price indicates that the company has no value (i.e. cash equal to share price). Yes it is very high risk, but they have good design wins with major players and will ramp up during 2013, and in the shareholder briefing at their 2012 first quarter the CEO seemed confident of financing. I suspect another quarter of poor results and then we should see some improvement. As with all high risk business of this type, a small improvement will show huge gains in the share price. At $1.20 this is a bargain stock that could double or even triple over 12 months.
Buying Anadigics is a very high risk, but the share price indicates that the company has no value (i.e. cash equal to share price). Yes it is very high risk, but they have good design wins with major players and will ramp up during 2013, and in the shareholder briefing at their 2012 first quarter the CEO seemed confident of financing. I suspect another quarter of poor results and then we should see some improvement. As with all high risk business of this type, a small improvement will show huge gains in the share price. At $1.20 this is a bargain stock that could double or even triple over 12 months.
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