There are quite a number of things going on at Trident Microsystems, Inc. (PINK:TRIDQ) that I think investors ought to look at… within the premise of the Company just entering bankruptcy…
First up is that the Company was delisted from the NASDAQ because of the bankruptcy filing and I think primarily because the stock had fallen below $1. Shares immediately began trading with the TRIDQ ticker on the OTCQB. Trading on this or that exchange, which was once a big deal, isn’t any more. Some of the biggest ADR’s and global companies trading far above $50 a share now trade on the “Pinks” so the old stigmas are gone. Companies will trade on any exchange where they fit in and can get the best deal: it costs money to trade on the NYSE.
Next, in short, some bankruptcy notes; let me lead off with a quote… “Trident, like many of its competitors, has been undergoing rapid changes which have hindered its ability to operate profitably,” stated Dr. Bami Bastani, chief executive officer of Trident. “A combination of increased pricing pressures in our industry, lower demand in consumer electronics, and slower than anticipated new product adoption has contributed to increased operating losses, a deterioration in liquidity and an erosion in equity values for Trident.”
In initial bankruptcy filings; TRIDQ is selling its set-top-boxes business, has sold its China facility, and entered into a license agreement with RDA Technologies to which it granted a non exclusive license to the TRIDQ SX-5 SOC product for the television market. Under the license agreement, Trident has received an upfront fee of $7.5 million and expects to receive an additional $8.5 million in the near term.
The major point here is that while assets are sold or licensed, the Company will operate all of its business lines in the ordinary course and has ample liquidity to do so, while it completes the Bankruptcy approval process.
A breath of fresh air and a new start…
On Jan 16 TRIDQ and in a move into “Smart TV’s” the Company announced that its 3D Cinemascope technology and a complete suite of connected solutions offered in TV550 system-on-a-chip (SoC) and PNX5120/30 frame rate converter (FRC) have been designed into a leading OEM's new 58-inch 3D Cinemascope with TVs scheduled to ship in the first quarter of 2012.
On Jan 12 at the CES show in Las Vegas, TRIDQ showcased its “Social TV” with Facebook. The TV UI shares what is playing and integrates key social features: Like, comment, and chat, providing a truly immersive and interactive social TV experience.
As the President pointed out in his State of the Union address last night; look at General Motors after bankruptcy, now, again, the #1 car maker in the world. One step back; two steps forward. TRIDQ is trading at $0.17 and might be worth a serious look...
I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.