Top Chinese Stock Picks From The World's Largest Money Managers

[MaxKolbe]

#2 Spreadtrum Communications Inc. (SPRD): SPRD is a Chinese fabless designer of baseband processor and RF transceiver solutions for wireless communications market. Mega funds together added a net $22 million in Q4 to their $81 million prior quarter position in the company, and taken together mega funds hold 13.3% of the outstanding shares. The top buyer was Fidelity Investments ($27 million), also the top holder at $53 million.

SPRD shares were cut in half by early January from last year's November highs, despite reporting impressive quarter results, due to concerns about its long-term competitive position. In the latest Q4 reported exactly a month ago, those concerns finally came to bear as the company, despite beating Q4 analyst revenues and earnings, guided Q1 revenues and gross margins significantly lower. A number of analysts, most notably JP Morgan and Needham, downgraded the stock. Its shares have been flat since the negative Q4 forward guidance, and they trade at a current 5.7 P/E and 2.4 P/B compared to averages of 19.2 and 1.7 for its peers in the electronic components semiconductor group, while earnings are projected to fall from $2.78 in 2011 to $2.40 in 2013.

http://seekingalpha.com/article/468901-top-chinese-stock-picks-from-the-world-s-largest-money-managers