Daytraders: Huge Moves In Spreadtrum Communications

Daytraders that haven't already pulled up Spreadtrum Communications SPRD may want to do so - the best daytrading catalyst in the market right now (a report from Muddy Waters) has sent the volatility in this stock through the stratosphere. The shares are currently down 18%, but have rallied considerably off of the lows. Expect massive volume, and huge volatility for the rest of the session in SPRD. Keep the stops tight and ride the momentum in this name long and short (if there are any borrows left.) Below is the body of the email sent by Muddy Waters earlier today that sent the stock plummeting. June 28, 2011 Muddy Waters, LLC has begun researching Spreadtrum, Communications Inc. SPRD, and we have taken a short position in it. (Please see our disclaimer below.) We have identified a number of issues in SPRD's filings, and we believe that there is a high risk of material misstatement in the reported financials. Our concerns are gravest regarding 2010 and 2011 numbers. The below link is to an open letter we have written to SPRD chairman Li regarding our concerns. SPRD: Open Letter to Chairman re MW Concerns Disclaimer: Use of Muddy Waters LLC's research is at your own risk. You should do your own research and due diligence before making any investment decision with respect to securities covered herein. You should assume that as of the publication date of any report or letter, Muddy Waters, LLC (possibly along with or through our members, partners, affiliates, employees, and/or consultants) along with our clients and/or investors has a short position in the stock (and/or options of the stock) covered herein, and therefore stands to realize significant gains in the event that the price of stock declines. Following publication of any report or letter, we intend to continue transacting in the securities covered therein, and we may be long, short, or neutral at any time hereafter regardless of our initial recommendation. This is not an offer to sell or a solicitation of an offer to buy any security, nor shall any security be offered or sold to any person, in any jurisdiction in which such offer would be unlawful under the securities laws of such jurisdiction. Muddy Waters, LLC is not registered as an investment advisor. To the best of our ability and belief, all information contained herein is accurate and reliable, and has been obtained from public sources we believe to be accurate and reliable, and who are not insiders or connected persons of the stock covered herein or who may otherwise owe any fiduciary duty or duty of confidentiality to the issuer. However, such information is presented "as is," without warranty of any kind – whether express or implied. Muddy Waters, LLC makes no representation, express or implied, as to the accuracy, timeliness, or completeness of any such information or with regard to the results to be obtained from its use. All expressions of opinion are subject to change without notice, and Muddy Waters, LLC does not undertake to update or supplement this report or any of the information contained herein. Muddy Waters, LLC June 28, 2011 www.muddywatersresearch.com