ANALYSIS / CONVERSATION: SPRD Trade Behavior

[Greg Schlueter]

As moderator of the SPRD Spreadtrum Communications Google Group, we
endeavor to stick to substantiated information and analysis-- good or
otherwise.

While this group is populated with substantial news demonstrating
SPRD's: tremendous market position/outlook, at a great buy (P/E),
solid auditing, analyst consensus averaging $32++, great corporate
interest (dividends and stock repurchase), validation by investment
firms, looking to positive announcement of solid Q42011 profits (Feb.
29), as of this writing it all begs the question per the price and
trading right now: WTH?

Opening the door to constructive feedback.

My two-cents are that SPRD has been a playground for the nanos and
shorts, exacerbated by the MW malaise of last year. We're in the midst
of a changing of the guard toward fundamentals-based movement. I know
many long investors remain on the sidelines because of historical
volatility. Though the recognize the value, they don't know the
bottom. I think they're waiting to see strong, upward movement
corresponding to value... approximating P/E.

In short, I think we're awaiting escape velocity. What will that
take? The fundamentals, news and overall position is rocket fuel for
sure. That's enhanced by the number of shorts by the way who will need
to cover. My guess is that Q4 profit announcement could be the thing--
coupled with continued reports of the demand in China and SPRD (CEVA,
etc.'s) position there... all nudging interest by institutional and
larger investors.

[ysk43]

Hi Greg,

Your input is most appreciated.
Navellier' Quantum Growth just down graded
the SPRD from grade B to grade C, this week.
Any thoughts?
Thanks.

y