Office Depot and this company are similar in many ways.
The next in line for a buyout could be this chip company. It stands in the way of several companies and could be a great asset for a big company to move heavy into its market.
Entropic Communications and Intel Collaborate to Deliver Industry's First MoCA 2.0 Based Video GatewayGlobeNewswire (Tue, Jun 14) TiVo Harnesses the Power of Entropic Communications' Silicon to Deliver Unparalleled Home Entertainment PerformanceGlobeNewswire (Tue, Jun 14) Tianjin Broadcast and TV Networks Deploys Entropic Communications Ethernet-Over-Coax Solution; Providing High Bandwidth Coverage to 1.3M SubscribersGlobeNewswire (Tue, Mar 22)Guangzhou Digital Media Group Selects Entropic Communications Access Technology to Offer IPTV Service to Its SubscribersGlobeNewswire (Tue, Mar 22 Expanding Into China Entropic Communications Ships More Than 50 Million MoCA Silicon SolutionsGlobeNewswire (Tue, Jun 7) almost 150% increase over the past year: http://www.nasdaq.com/aspxcontent/shorti...
15 days to cover over 30 million shares ! That's a lot of short covering for a small cap with a small float. This greed can be good for those who hold on. There is money to be made. Entropic's CFO says he expects revenues to quadruple in the coming months. The shipping of new Moca 2 chips begins this month.
The Reason for Excitement:
The theme for the rest of 2011 will be connecting all devices to the internet and the rise in entertainment venues. Netflix, Apple, Intel and Wal-Mart are connected to video streaming. Microsoft, Sony, Amazon, Netflix, Blockbuster and Roxio CinemaNow, a division of Sonic Solutions, all offer online movie stores for Internet-connected devices like HDTVs, Blu-ray players or video game consoles. Apple sells movies and TV shows alongside music in its iTunes store. Entropic Communications has more than 70% of a rapidly growing streaming chip market and just announced shipping more than 50 million chips.
Moca 2 is new. There is no competition for Moca 2. These FAB chips require a cycle of about 5 years to reproduce. It was recently revealed MoCA 2.0, the new offering, will take on a greener posture along with the speed. One previously undisclosed wrinkle is Turbo. This wrinkle makes Moca 2.0 up to 10 times faster than any chip on the market today. The New York Times is reporting that Walmart has agreed to buy Vudu, a streaming movie rental service. Walmart had not made any moves into online video–until now. And Walmart (one of Fast Company’s 2010 Most Innovative Companies) has the ability to shake up the field more than any other retailer. The news known is positive for Entropic in the second half of the year.
M&A rumors should start heating up for small cap semiconductor stocks once again. Entropic is one of the most mentioned acquisition targets.
The short position is large. Short tactics can include: blackmail, smear campaigns, espionage, fraud, harassment, rumor-mongering, blogs, bad science, forgery, counterfeiting, lying, cheating, and threats.
Remember the time proven saying: The greater the risk: the greater the reward.
For risk takers, that means opportunity. If the shorts are wrong, the stock will spike during the squeeze while the shorts try to get out. Volume is now low, short is high. Short covering will be very difficult. Shorts will sell and the strong up will continue. The stock price could explode