Spreadtrum ( SPRD ) is a semiconductor company that designs, develops and markets baseband processor solutions for the wireless communications market. Spreadtrum combines its semiconductor expertise with its software development capabilities to deliver highly-integrated baseband processors with multimedia functionality and power management.Wall Street has discovered this stock and has 5 buy and 2 hold recommendations published. Sales and earnings projections are off the chart with sales expected to increase 146.90% this year and 23.60% next year. Earnings are a similar story with estimates of increases in EPS to be 311.60% this year 18.70% next year and continue at an annual rate of 20.00% for the next 5 years. I like these numbers.
Investor sentiment is beginning to build with the CAPS members on Motley Fool voting 180 to 29 that the stock will beat the market and a similar vote is registered by the All Stars vote of 47 to 6.
The data on Barchart shows that this is a current momentum play with 12 new highs in 20 trading sessions and 4 new highs in the last 5 days. The monthly return on this stock has been 70.03%. All of Barchart's 13 technical indicators signal a buy for a 100% buy score.
I think this stock still has some room to run because:
- Wall Street predicts double digit sales and earnings to continue
- The stock is just beginning to build a positive investor sentiment
- Each day the stock has increases in price appreciation
Disclosure: No positions in SPRD at the time of publication
