Spreadtrum Communications Inc. (SPRD): Today's Featured Electronics Loser

Spreadtrum Communications ( SPRD) pushed the Electronics industry lower today making it today's featured Electronics loser. The industry as a whole closed the day up 2.2%. By the end of trading, Spreadtrum Communications fell 40 cents (-2.5%) to $15.70 on average volume. Throughout the day, one million shares of Spreadtrum Communications exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in price between $15.59-$16.41 after having opened the day at $16.12 as compared to the previous trading day's close of $16.10. Other company's within the Electronics industry that declined today were: Enova Systems ( ENA), down 18.3%, Hoku ( HOKU), down 10.8%, Schmitt Industries ( SMIT), down 6.8%, and Nortech Systems Incorporated ( NSYS), down 5.9%.

Spreadtrum Communications, Inc., a fabless semiconductor company, engages in the design, development, and marketing of mobile chipset platforms for smartphones, feature phones, and other consumer electronics products in the People's Republic of China and internationally. Spreadtrum Communications has a market cap of $771.2 million and is part of the technology sector. The company has a P/E ratio of 6.6, above the average electronics industry P/E ratio of 3.6 and below the S&P 500 P/E ratio of 17.7. Shares are down 22.9% year to date as of the close of trading on Friday. Currently there are three analysts that rate Spreadtrum Communications a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates Spreadtrum Communications as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, attractive valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Vimicro International Corporation ( VIMC), up 24.4%, China Sunergy ( CSUN), up 20.9%, Ultra Clean Holdings ( UCTT), up 17.5%, and Data I/O Corporation ( DAIO), up 14.8%, were all gainers within the electronics industry with Taiwan Semiconductor Manufacturing ( TSM) being today's featured electronics industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the electronics industry could consider iShares Dow Jones US Technology ( IYW) while those bearish on the electronics industry could consider ProShares Ultra Short Semiconductor ( SSG).
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