Is Siliconware Precision Industries (ADR) (SPIL) A Good Stock To Buy?

Now, some big names have been driving this bullishness. Navellier & Associates, led by Louis Navellier, initiated the most valuable position in Siliconware Precision Industries (ADR) (NASDAQ:SPIL). According to its latest 13F filing, the fund had $3,000 invested in the company at the end of the quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Siliconware Precision Industries (ADR) (NASDAQ:SPIL). We will take a look at Avid Technology, Inc. (NASDAQ:AVID), Primo Water Corporation (NASDAQ:PRMW), Natural Gas Services Group, Inc. (NYSE:NGS), and THL Credit, Inc. (NASDAQ:TCRD). This group of stocks’ market values are closest to SPIL’s market value.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $50 million. That figure was $16 million in SPIL’s case. Avid Technology, Inc. (NASDAQ:AVID) is the most popular stock in this table. On the other hand THL Credit, Inc. (NASDAQ:TCRD) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Siliconware Precision Industries (ADR) (NASDAQ:SPIL) is even less popular than TCRD. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: none.