Tuesday, September 28, 2010

Bookkeeping: Adding to Spreadtrum Communications (SPRD)

Spreadtrum Communications (SPRD) is down sharply this morning on what seems to be a small firm downgrading it.  Truthfully it needed an excuse to come in, so any reason will do but I still find it amazing investors take so much heart in analyst actions.  While I hate "gap downs" as they tend to cause havoc on the charts, this analyst action took the stock down to its 20 day moving average (slightly below intraday) finally offering a more reasonable entry period.  With the S&P 500 so extended I am still treading carefully because SPRD is the type of stock that when the S&P sells off 3%, will drop 10%... but I have added a small 0.9% exposure...

As long as the name holds the 50 day ($11.22) in the long run, it's in decent shape.  I'd prefer to be a buyer "down there".

Long Spreadtrum Communications in fund; no personal position


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