5-Star Stocks Poised to Pop: Actions Semiconductor

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Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese chip maker Actions Semiconductor (Nasdaq: ACTS) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks woefully lag the market average.

With that in mind, let's take a closer look at Actions Semi's business, and see what CAPS investors are saying about the stock right now.

Actions Semi facts

Headquarters (founded)	Zhuhai, China (2001)
Market Cap	$148.73 million
Industry	Semiconductors
TTM Revenue	$111.41 million
Management	CEO Nan-Horng Yeh (since 2005) CFO Patricia Pei-Fen Chou (since 2007)
Return on Equity (average, last three years)	33.4%
Competitors	Broadcom (Nasdaq: BRCM) Texas Instruments (NYSE: TXN)
CAPS members bullish on ACTS also bullish on:	General Electric (NYSE: GE) Chesapeake Energy (NYSE: CHK)
CAPS members bearish on ACTS also bearish on:	Citigroup (NYSE: C) Bank of America (NYSE: BAC)

Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 452 of the 467 members who have rated Actions Semi -- or 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include CAPS All-Star EggplantWizard and skymutt2.

Three days ago, EggplantWizard shared a few of the stock's cheapish stats for our community: "No long term debt, 0.5 price to book, low P/E, solid long term prospects. ROE TTM >15%."

In a pitch from last month, skymutt2 shares that bargain-based reasoning, writing:

[S]till generating positive cash flow from operations in tough market conditions for semiconductor companies. Less exposure to US market and tapped US consumer than some competitors. Recently announced stock buyback. Lots to like here and the price is way right at a buck and change.

What do you think about Actions Semi, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.