A potential activist target

I bet you likely have never heard the company called Kulicke & Soffa Industries (KLIC). KLIC is a rather small company with a market cap of only $1 B and based in Singapore. But it is actually a industry leader in the semiconductor market: manufacture and sell wire bonding to bond semiconductors to circuit boards. While small, it is a cash gusher with a huge free cash flow in terms of its size. It has over $5 million cash in hands without debt. With a share price of $13, half of the stock price is actually cash. Right now, its P/E is about 10 but if you factor in its cash load, the P/E can be halved or even lower. In other words, KLIC is extremely cheap at this price. However, KLIC revues to pay a dividend or buy back stocks. With this kind of cash rich business at this low stock price but failing to return values to investors, it is normally attracting the attention of the so-called activist investors. The most famous one is Carl Icahn. Whenever Icahn touches a company, its stock will shoot up to moon as investors know that Icahn will do all he can to boost the value for the investors, which will also add great value to himself.  I won't be surprised to see this happen to KLIC by Icahn or someone else. It make a lot of sense to me. If you want to bet on this, you should consider to get in now when KLIC is still cheap at the moment.