Entropic Communications, Inc. (ENTR): John Thiessen’s New Bet

Is it a good time to buy Entropic Communications, Inc. (NASDAQ:ENTR) stock? John Thiessen seems to think so, having initiated a position for his fund, Vertex One Asset Management. According to a recent filing with the Securities and Exchange Commission, Vertex One has acquired 7.03 million shares which account for approximately 7.9% of the company’s common stock.

Jeffrey Smith and his fund, Starboard Value LP, also hold a sizable stake in Entropic Communications, Inc. (NASDAQ:ENTR), but have decided to trim it during the second quarter of 2014. In its latest 13F filing, Starboard Value has reported ownership of 2.75 million shares worth $9,15 million. Jeffrey Moskowitz, on the other hand, is bullish on the stock and has initiated a position for his fund during the same period of time. Harvey Partners reportedly holds 730,000 shares valued at $2.43 million. David E. Shaw has also decided the stock can go higher and has boosted his fund’s investment by 22% to amass approximately 433,700 shares worth $1.44 million.

So far this year, Entropic Communications, Inc. (NASDAQ:ENTR) stock has plummeted 43% to a current price of $2.64 per share, which gives the company a market cap of $234 million. For the three months ending June 30, 2014, Entropic Communications, Inc. (NASDAQ:ENTR) has announced revenues of $50.2 million, down 29% year-over-year, and a loss per share of $0.23. Analysts expect the company to post revenues of $50.2 million and a loss of $0.11 per share for the third quarter of 2014.

Entropic Communications, Inc. (NASDAQ:ENTR)’s MoCA(R) (Multimedia over Coax Alliance) technology is becoming more and more popular, with Teleste Corporation using this technology in its new range of EoC (Ethernet over Coax) devices launched in Europe. The company has also announced that StarTimes, a key player in Pay-TV business, is set to use Entropic’s EN5288 Channel Stacking Switch (CSS(TM)) Outdoor Unit (ODU) solution for their satellite services in Africa. So is the company bound for a turn-around?

John Thiessen is also a big fan of Northern Tier Energy LP (NYSE:NTI), Vertex One’s biggest equity position. During the second quarter of 2014, Thiessen has built a position that amasses 2.37 million shares valued at $63.4 million and which accounts for 6.37% of the fund’s equity portfolio. He is also betting big on CVR Refining LP (NYSE:CVRR) with Vertex One Asset Management holding 1.95 million shares worth roughly $48.7 million.

Disclosure: none.