New Lifetime High For Spansion (CODE)

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 Spansion ( CODE) 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 $172.1 million.
  • CODE has traded 140,016 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 2.3 million shares per day over the past 30 days. Spansion has a market cap of $1.9 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.58 and a short float of 12.1% with 1.17 days to cover. Shares are up 125.4% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Spansion as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and robust revenue growth. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 70.6% when compared to the same quarter one year prior, rising from -$36.90 million to -$10.85 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 18.7%. Since the same quarter one year prior, revenues rose by 15.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • SPANSION INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SPANSION INC swung to a loss, reporting -$1.34 versus $0.40 in the prior year. This year, the market expects an improvement in earnings ($0.98 versus -$1.34).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness 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.
  • Net operating cash flow has decreased to $34.68 million or 30.37% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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