UTSI @$5.60 -- Contrarian Alert!
UTStarcom, Inc. (UTSI @$5.60) designs, manufactures and sells telecommunications infrastructure, handsets and customer premise equipment and provides services associated with their installation, operation, and maintenance. The Company's products are sold primarily to telecommunications service providers or operators. It sells a range of products that are designed to enable voice, data and video services for its operator customers and consumers around the world. The segments in which the Company operates include Wireless Infrastructure; Broadband Infrastructure; Personal Communications Division (PCD); Handsets, and Services.
Key statistics:
finance.yahoo.com
Main points to be noted:
1. 3 consecutive quarters of positive earnings surprises.
2. Insiders have not sold a single share in the past 6 months, while institution holdings have increased. Major holders include: BRANDES INVESTMENT PARTNERS L.P., RENAISSANCE TECHNOLOGIES CORP, Tiger Global Management, LLC, VANGUARD GROUP, INC., STATE STREET CORPORATION,
Mellon Financial Corporation, JACOBS LEVY EQUITY MANAGEMENT, INC., SCHWAB (CHARLES) INVESTMENT MANAGEMENT, INC., GOLDMAN SACHS GROUP INC., Barclays Global Investors UK Holdings Ltd.
One of the main reasons of our recommendation is the recent appointment of Mr. Peter Blackmore as the new CEO.
The WSJ reports on July 5: UTStarcom Inc. (UTSI) set the salary for Peter Blackmore, the networking company's new president and chief operating officer, at $800,000, according to a regulatory filing Thursday.
He also will get a $5.2 million restricted cash award over four years.
Blackmore, who recently served as executive vice president of worldwide sales, marketing and technology at Unisys Corp. (UIS), is expected to take over chief executive duties from CEO Hong Lu within the next year.
Blackmore also will get an annual bonus equal to his salary, depending on the Alameda, Calif., company's performance, and a $100,000 signing bonus, according to the filing with the Securities and Exchange Commission.
Weekly Chart analysis:
stockcharts.com
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