- SA contributor GeoTeam notes an article in China that it says backs up its bullish stance on UTStarcom (UTSI +0.5%), pointing out that strategic investor Gu Guoping looks to have sealed an 11M share purchase.
- The transaction, at about $6/share, looks like a precursor to Gu taking control or taking UTStarcom private, the team says. UTStarcom is trading currently on Nasdaq at $2.21.
- The group pointed to its earlier report highlighting a 13D/A amendment about planning to sell 12M shares between investors at a premium of over 200%.
- UTStarcom is priced right around cash value, and at more than a 30% discount to book value, GeoTeam says, with a $230M net operating loss carry-forward to boot.