Feeds

Acorn shares "good value"

And why the company is worth less than its stake in ARM

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

Why oh why is Acorn’ s capitalised at £35 million less than the 26.8 per cent stake it holds in ARM, the RISC chip wonder stock, asked bemused shareholder R.S. Grewal of London, in a letter to this week’s Investors Chronicle. "I have looked into all the other factors such as debt," he writes, "but apart from the fact that Olivetti at the end of June disposed of most of their shareholding in Acorn, I cannot see any other good enough reason to justify the slide". Except that – as Investors Chronicle helpfully points out – Acorn’s holding in ARM is subject to a £40 million tax charge – which the market has factored into the company’s pitifully low share price. RS Grewal argues that Acorn’s future must be brighter than ARM – as it is employed "in more interactive digital TV trials worldwide than any other". At least he has the good sense to refrain from mention that technological cul-de-sac the Acorn RISC PC (just a little joke for all our fans in the Acorn community). But Investors Chronicle replies that "while a case can be argued for the potential of Acorn’s new products, they have yet to earn profits which makes any investment a speculative one". It points out that the company has "an operating loss of £5.6 million and hasn’t made a real profit since 1993". Nevertheless, the magazine rates Acorn’s shares as good value. Supported by the ARM stake, the company represents an "opportunity", it says. ®

The Power of One Infographic

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.