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
Tuesday, September 28, 2010
Bookkeeping: Adding to Spreadtrum Communications (SPRD)
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows