Ok, as promise, here are some coverages on Actions' recent business developments and hight demand on its products.

1. Actions AEF hearing protection technology is in hot demand recently after several big brands including Applie IPOD were sued for impairing users' hearing:

http://mp3.yesky.com/297/9259297.shtml

http://mp3.zol.com.cn/153/1530215.html

2. Actions' products were highly praised by critics for its top of the market sound quality and high graphic quality (some products are for MP3 and some for MP4 as I know):

http://mp3.zol.com.cn/152/1525802.html

http://audio.pconline.com.cn/pingshu/091...

3. Actions new automobile MP3 products are in hot demand:

http://sd.cbinews.com/Market/2009/1030/2...

As for the ER, the revenue and gross margin were in line with what I calculated. The bottom line was impacted due to a couple restructuring issues. Going forward, I estimate that the company will deliver revenue of 11M and net profit of 3 ~ 5 cents per share in Q4. Remember that most loss from Actions Beijin will be removed in Q4. Also that basing on the CFO's super conservative personality and what I see the high demand for Actions' products in market currently, I expect that the actual revenue will trump the upper bound of her forecast of 10.5M, as the revenues in Q2 and Q3 did.

Due to a little bit slower margin improvement in the short term, I lower my price target for this year from 4 to 3.7, the current book value of equity.

For 2010, my current forecast calls for EPS of 30 ~ 50 cents per share. At this point it is a little bit hard to narrow the range without materially reducing the confidence level of my forecasting model. Price target for 2010 is set to 7 (6 to 8 depanding is the range).

I maintain my STRONG BUY rating on the stock.

Scott, FA