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Why RDA Microelectronics Is Poised to Bounce Back

By Brian D. Pacampara, CFA - Apr 9, 2013 at 11:05AM

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Market-trouncing returns could be written in this 4-Star.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fabless semiconductor company RDA Microelectronics (NASDAQ: RDA) has earned a respected four-star ranking.

With that in mind, let's take a closer look at RDA and see what CAPS investors are saying about the stock right now.

RDA facts

Headquarters (founded)

Shanghai, China (2004)

Market Cap

$455.8 million

Industry

Semiconductors

Trailing-12-Month Revenue

$391.3 million

Management

Co-Founder/Chairman/CEO Vincent Tai

Co-Founder/Chief Technology Officer Shuran Wei

Return on Equity (average, past 3 years)

29.3%

Cash/Debt

$117.5 million / $0

Competitors

Broadcom

Infineon Technologies

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 84% of the 19 members who have rated RDA believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, ScalaAnalyst, tapped RDA as a particularly attractive bargain opportunity:

This company has been hard hit recently, but I believe it is an overreaction to current news. They are trading near their 52 week low of [$8.51/share] and with a P/E of 8.35 they are approaching bargain basement prices. ... Other highlights worth looking [at is] a PEG of 0.53 making it a good investment compared to its competitors. From an earning perspective the last three quarters we doing quite well, and if they can continue this trend then an investment in this stock should outperform in a few years ahead.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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