STMicroelectronics (STM) Stock Gains on Heavy Trading Volume

NEW YORK (TheStreet) -- Shares of STMicroelectronics (STM) were gaining 1.2% to $8.30 on heavy trading volume Tuesday after the announcement of Canal+ Group's new Cube S set-top box.

The new Cube S set-top box is powered by STMicroelectronics' STiH310 dual-core multimedia processor, which offers "computing power of over 7500 DMIPS, powerful graphics acceleration," and connectivity optimized for Wyplay's open source Frog Client middleware which powers the user experience.

"Our STiH310 processor brings 10 times more processing power compared to the previous generation of Canal+ Group set-top-boxes, making the Cube S one of the most powerful and innovative hybrid devices," STMicroelectronics Group Vice President and General Manager of Consumer Product Division Philippe Notton said in a statement.

About 1.9 million shares of STMicroelectronics were traded by 9:37 a.m. Tuesday, above the company's average trading volume of about 1.2 million shares a day.

TheStreet Ratings team rates STMICROELECTRONICS NV as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate STMICROELECTRONICS NV (STM) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."

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