Roumell Cuts Exposure to Transcept Pharmaceuticals (TSPT) and Ups Stake in DSP Group (DSPG)

Jim Roumell’s Roumell Asset Management, filed yesterday, two forms disclosing its current positions in Transcept Pharmaceuticals Inc (NASDAQ:TSPT) and DSP Group, Inc. (NASDAQ:DSPG).

In relation to DSP Group, Inc. (NASDAQ:DSPG), Roumell reported an increase in its ownership, to a current amount of 1.06 million shares, from 984,200 shares declared in its last 13F filing. The fund’s holdings in the company are valued at more than $9 million.

DSP Group is a micro-cap (less than $200 million market cap) company that provides system solutions that combine semiconductors and software with reference designs. Despite its razor thin margins and returns, and poor EPS growth projections, its stock trades at 88.5 times the company´s earnings, but only at 1.3 times its sales. However, its valuation does not seem justified. Notwithstanding, Roumell has been upping its stakes in DSP Group, Inc. (NASDAQ:DSPG) for several months now.

Jim Roumell

Other funds betting on DSP Group are D E Shaw, which last reported having increased its stakes by 7% over Q3, to 81,300 shares. On the contrary, the three remaining funds among the top 5 bulls in DSP Group, Inc. (NASDAQ:DSPG), Starboard Value Lp, Nokomis Capital and Renaissance Technologies all reduced their holdings over 2013’s third quarter.

On the other hand, Roumell Asset Management declared trimming its position in Transcept Pharmaceuticals Inc (NASDAQ:TSPT), currently holding 2.20 million shares, Roumell reduced its participation in the company by about 2%, in relation to its last 13F filing, for 2013′s Q3. The stake held by Roumell now amasses around 11.7% of the outstanding stock. Earlier, the fund acknowledged selling 48,200 shares of the company. Then, on Dec. 31st, it sold another 59,600 shares.

These moves are quite understandable, given Transcept Pharmaceuticals Inc (NASDAQ:TSPT)’s negative margins and returns and awful growth projections. In fact, most analysts seem to agree on the idea that Transcept is clearly a “hold” case, for now. However, other hedge fund managers like Jim Simons, D. E. Shaw, Cliff Asness and Paul Touradji do not seem to agree with this view, as all of them last reported having added this company´s stock to their equity portfolios (and we are talking about, at least, 10,000 shares each).

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended Reading:

Baupost Group Buys Over 16 Mln Shares of Idenix Pharmaceuticals Inc (IDIX)

Ra Capital Management Initiates Stake in Furiex Pharmaceuticals Inc (FURX) After the Stock Jumped

Deerfield Management Discloses Stake in Post-IPO Auspex Pharmaceuticals Inc (ASPX)

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!