More Defense of Spreadtrum (SPRD)
Another research report is actually out in support of Spreadtrum Communications Inc. (NASDAQ: SPRD). Yesterday came a report from short seller Muddy Waters questioning some accounting issues from back years on top of the recent weakness we have seen from…
Spreadtrum said that the Muddy Waters concerns are baseless and the company also approved a quarterly cash dividend of US$0.05 per American Depositary Share or approximately US$0.0167 per Ordinary Share. It is worth noting that Jefferies just yesterday threw a BUY rating with a $19.25 price target on Spreadtrum.
Zacks noted today that Spreadtrum (SPRD) fit within its strong buy ratings with sales momentum… That criteria was based having the Zacks #1 Rank, a market capitalization above $500 million, consensus revenue estimates rising at least 1% for both 2011 and 2012, and a positive revenue surprise in the most recently reported quarter. Zacks’ research report can be found here but Zacks did note the possible inventory issues.
Spreadtrum is trading up 10.5% at $13.81 on more than 8 million shares and the 52-week trading range is $7.60 to $24.20.
If the analysts are right and if there are no inventory and/or accounting issues, then the consensus has Spreadtrum trading at less than 2-times sales and with a P/E ratio of well under 10…
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
