Shares of MEMSIC (MEMS) Drop After Needham & Company Moves to Sidelines; From Undervalued to Overbought
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Price: $4.06 -0.25%
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 23 | New: 29
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 23 | New: 29
Trade MEMS Now!
Shares of MEMSIC (Nasdaq: MEMS) are down almost 12% in afternoon trading after Needham & Company suggests taking some profits.
Needham analyst, Vernon Essi, Jr, drops his coverage from Buy to Hold after the stock has risen almost 40% in the past few trading sessions (and has almost doubled since Jan '12). Essi feels that shares jumped last week on a bullish analyst report and initiation of coverage by Craig-Hallum (with a Buy rating).
Essi said, "...And we philosophically disagree that there is a sustainable business model in ICs chasing the tail of the units/customer Pareto distribution. MEMS' inability to climb that curve and serve the top-tier OEMs makes for spotty market share gains that we believe are likely short-lived. Also, we cannot see how the strategy of offering the lowest price at a subpar margin will reward the shares with a respectable P/E even on limited periods of upside earnings. Thus, we are downgrading our rating and believe investors should stay on the sidelines."
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Needham analyst, Vernon Essi, Jr, drops his coverage from Buy to Hold after the stock has risen almost 40% in the past few trading sessions (and has almost doubled since Jan '12). Essi feels that shares jumped last week on a bullish analyst report and initiation of coverage by Craig-Hallum (with a Buy rating).
Essi said, "...And we philosophically disagree that there is a sustainable business model in ICs chasing the tail of the units/customer Pareto distribution. MEMS' inability to climb that curve and serve the top-tier OEMs makes for spotty market share gains that we believe are likely short-lived. Also, we cannot see how the strategy of offering the lowest price at a subpar margin will reward the shares with a respectable P/E even on limited periods of upside earnings. Thus, we are downgrading our rating and believe investors should stay on the sidelines."
To see more ratings on MEMS, Click Here
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