On May 3, two corporate officers of Entropic Communications made
as the price of the stock hit a three-year low.
Senior VP and General Counsel Lance Bridges bought 20,000 shares
at an average price of $3.93. He spent a total of $78,600 on this
buy. Bridges now holds on to at least 96,073 shares of Entropic.
CFO David Lyle bought 10,000 shares of Entropic at $3.93 per
share. This cost the CFO a total of $39,300. Lyle now holds on to
at least 33,809 shares of the company's stock.
Since these two men made buys, the company's price has increased
Entropic Communications (
) is a fabless semiconductor company that designs, develops and
markets systems solutions to enable connected home entertainment.
Entropic was one of the pioneers of the key technologies that
enable connected home networking of digital entertainment over
existing coaxial cables. The company also provides systems
solutions comprised of silicon integrated circuits and associated
software as a platform to enable delivery of multiple streams of
HD video and other multimedia content into and throughout the
home. Entropic offers their products to service providing
companies like Comcast, Cox, DISH Network and Time Warner Cable
as well as OEM/ODM customers such as Cisco, D-Link, TiVo, Samsung
and many others.
What to look for in Entropic:
� The company has no debt.
� The P/S ratio is close to a three-year low of 1.05.
� In the past year the company's revenue has grown
� The company's revenue has been growing since 2009.
� The company's P/B ratio is at 1.
Possible Warning signs for Entropic:
� The EPS of Entropic have been getting smaller since
� The company's asset growth is faster than its
� The company's 10-K reported that Entropic only
became profitable recently, and that they are unsure if it will
remain profitable due to intense competition with companies that
are better capitalized.
First Quarter Earnings Highlight
first quarter net revenue
was $74.5 million which is up from $59.1 million in the first
quarter of 2012.
� The company's first quarter net loss (GAAP) was $2.4
million compared to the net income of $3.9 million from the first
quarter of 2012.
President and CEO of Entropic, Patrick Henry said of the
company's first quarter results, "2013 is a transitional year for
Entropic; we are working to develop and bring new and integrated
products to the market, improve our gross margins and target key
designs at Tier-1 operators. We've already made significant
progress towards these goals and continue on our pursuit to be a
leading global silicon supplier in the multi-billion dollar
connected home entertainment market."
holds 592,000 shares of Entropic Communications as of Dec. 31,
Joel Greenblatt holds 173,122 shares of Entropic as of Dec. 31,
Entropic Communications will be presenting at the JP Morgan
Global Technology, Media and Telecom Conference on May 16 at 9:20
With its shares up 2.28%, Entropic trades at $4.04.About
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