UMS

Initiated small position in UMS today.

Prices still falling and may fall further but I decided its 'cheap' enough to start buying.
Was on my watch list for quite a long while but did not had any opportunity as I continue to watch this stock keep on running up...

In the biz of semiconductor industry and its downside risks is tied closely to its key customer Applied Materials (80% of revenue).
It has a contract with Applied Materials until 2017 (renewable) and to me, its strong relationship with Applied Materials is its economic moat.
Applied Materials recently is reducing its stake in UMS that is causing the plunge, plus the CEO selling his shares too.
I am buying as I am not trying to read too much into their actions.
Companies/people sell their stocks for various reasons so I am of opinion (optimistic) that it is not due to a deterioration of UMS fundamentals or relationship with Applied Materials.
Keeping fingers crossed.

At current prices, PE approx. 8, dividend yield >7% for a net cash company with sound fundamentals and strong earnings.
Sounds good to me.