March 12, 2010 (Chinavestor) Shares of UTStartcom (NASDAQ:UTSI) recovered from early morning losses by 11:00 A.M. - but we're of a view that value investors should not touch this stock. Reason being that while fourth quarter revenues increased from previous quarter, losses widened and the company is still a fraction what it used to be in 2007.I like to look at current developments from a distance. To assess the situation after fourth quarter earnings, let's take a look at the following chart.
First observation is that revenues fell significantly in 2009 compared to 2008 and 2007. Second observation that the stock price is in shambles. Third, the company is sill in the red. We attached a link to a hard to find quarterly report: UTStarcom 2009 Fourth quarter and full year financial report.
The improvement in the red line, e.g. earnings, is somewhat misleading. The company bounced back off earlier lows but is still way in the red. At Chinavestor we like companies that report constant revenue and earnings growth, not the opposite.
We like charts Baidu.com (NASDAQ:BIDU) or Mindray Medical (NYSE:MR).
If you like us, spread the word to the fellow investors on your favorite Social Bookmarking websites
