Robert DeFrancesco’s

TechStockProspector.com
April 3, 2011

Entropic (ENTR) Drops 42% From January High

Shares of Entropic Communications (ENTR, $8.09), a provider of home-
networking chips, have been on a wild ride since last fall, rocketing up from below
$8 in the middle of October to a high of $13.96 on January 11. Since then, the stock
has sold off sharply, hitting a low of $7.50 on March 15.

Fidelity was a big buyer of Entropic during the second half of last year, adding 602K
shares in Q3 and 3.58 million shares in Q4. It now owns 4.29 million shares and is
the #1 institutional holder. Turner Investment Partners opened a position of 1.7
million shares in Q2, added 1.29 million shares in Q3, bought 657K shares in Q4 and
is now the #2 holder with 3.66 million shares. Friess Associates, with a new position
of 3.5 million shares from Q4, is now the third-largest investor.

But some investors abandoned the name in Q4: Insight Capital Research unloaded
its entire position of 2.29 million shares that it had opened in Q3 and Vinik Asset
Management sold out of its 1.8-million share position that it established in Q3.

Since the January high, Entropic’s forward P/E has been nearly cut in half, falling to
9.6 (based on the 2011 consensus EPS estimate of 84 cents) from 18.4. The 2011
consensus revenue estimate of $295.7 million represents expected growth of 40%.

Tech-Stock Prospector Managing Editor Rob DeFrancesco has more than 20

years of experience covering the tech sector. He is a former senior writer with
Louis Rukeyser’s Wall Street.

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