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New York, NY -- (SBWIRE) -- 03/11/2013 -- EZchip Semiconductor Ltd. (NASDAQ:EZCH) is over-valued and is inflating its GAAP earnings according to a report from the famous short biased value hedge fund, Kerrisdale Capital. Started by Sahm Adrangi, Kerrisdale Capital gained its fame shorting Chinese reverse mergers. The hedge fund was up 29% in 2012 (a lackluster year for the firm compared to the 200% return in 2011). Now the hedge fund is targeting less “wonky” companies. Kerrisdale Capital has just issued a 22 page report detailing the short case. Kerrisdale notes the company faces :immediate Competitive Threats, Customer Defections and Unsustainable Valuation.” Disclosure: Kerrisdale is short shares of EZCH.
EZchip Semiconductor Ltd. (NASDAQ:EZCH) shares currently trade at $23.97, implying an egregious 7.5x 2013E EV/Revenue and a 32.5x GAAP P/E, surprising multiples for a business that has repeatedly demonstrated its inability to grow. As we frequently see in mispriced businesses, a high-level sector story - in this case the need for greater bandwidth on capacity constrained carrier networks - has steered investors into an overpriced stock with many idiosyncratic risks. We believe that investors are not properly assessing the competitive risks posed to EZchip’s business or the limits of the addressable market, especially in light of the EZCH’s astronomical valuation.
Should A Trader Buy Or Sell EZCH Now: CHECK HERE
Atlantic Power Corp (NYSE:AT) owns and operates a diverse fleet of power generation and infrastructure assets in the United States and Canada. Atlantic Power's power generation projects to sell electricity to utilities and other large commercial customers largely under long-term PPAs, which seek to minimize exposure to changes in commodity prices.
Atlantic Power has a market capitalization of approximately $650 million and trades on the New York Stock Exchange under the symbol AT and on the Toronto Stock Exchange under the symbol ATP. For more information, please visit Atlantic Power's website at www.atlanticpower.com.
Shares of Atlantic Power Co (NYSE:AT) are trading at $5.422 and is -49.52% of its 50-day Moving Average price of $10.74 and -57.15% from its 200-day Moving Average price of $12.653. The average trading volume is 1286960 shares and its market capitalization is $647.6M.
Will AT Rebound After Today’s Slump? Find Out Here
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