Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Spansion as such a stock due to the following factors:
- CODE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $60.2 million.
- CODE has traded 4,867 shares today.
- CODE is trading at a new lifetime high.
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More details on CODE:
Spansion, Inc. designs, manufactures, develops, and sells embedded systems semiconductors worldwide. The company offers flash memory, microcontrollers, mixed-signal and analog products, and embedded system-on-chip solutions. Currently there are 5 analysts that rate Spansion a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Spansion has been 2.2 million shares per day over the past 30 days. Spansion has a market cap of $2.3 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.58 and a short float of 18.3% with 5.64 days to cover. Shares are up 7.4% year-to-date as of the close of trading on Monday.
rates Spansion as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's revenue growth has not been good.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 60.00% and other important driving factors, this stock has surged by 133.83% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- SPANSION INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, SPANSION INC continued to lose money by earning -$0.92 versus -$1.34 in the prior year. This year, the market expects an improvement in earnings ($1.75 versus -$0.92).
- 40.85% is the gross profit margin for SPANSION INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -3.12% is in-line with the industry average.
- CODE's debt-to-equity ratio of 0.68 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.06 is sturdy.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, SPANSION INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Spansion Ratings Report.