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 anything in China. A denial of the problems, a declaration of a dividend, and a new positive research report are all driving shares higher today.
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
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
