Shares of MEMSIC (MEMS) Drop After Needham & Company Moves to Sidelines; From Undervalued to Overbought
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Price: $30.60 -0.46%
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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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."
To see more ratings on MEMS, Click Here
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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