Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese module design specialist Cogo Group (Nasdaq: COGO ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Cogo's business and see what CAPS investors are saying about the stock right now.
Cogo facts
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Headquarters (Founded)
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Shenzhen, China (1917)
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Market Cap
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$247.5 million
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Industry
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Communications equipment
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Trailing-12-Month Revenue
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$301 million
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Management
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Co-Founder/CEO Jeffrey Kang
CFO Fuya Zheng
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Return on Equity (Average, Past 3 Years)
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9%
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Compound Annual Revenue Growth (Over Past 3 Years)
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19.1%
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Cash/Debt
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$101.4 million / $14 million
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Other Highly Rated Communication Equipment Stocks
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Nokia (NYSE: NOK )
Harris (NYSE: HRS )
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CAPS Members Bullish on COGO Also Bullish on
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American Oriental Bioengineering (NYSE: AOB )
General Electric (NYSE: GE )
Vale (NYSE: VALE )
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CAPS Members Bearish on COGO Also Bearish on
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China BAK Battery (Nasdaq: CBAK )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 201 All-Star members who have rated Cogo believe the stock will outperform the S&P 500 going forward. These bulls include mypieceofpie and Teacherman1.
Just two weeks ago, mypieceofpie summed up the stock's bull case with just a few simple words: "Great [balance sheet]. China middle class play."
In a pitch from two weeks earlier, Teacherman1 offered a more in-depth look at Cogo. Here's an excerpt:
Provides customized module design solutions and serves as a gateway for technology component suppliers to access electronics manufacturers in China. Is into media, mobile, and power grid.
What they basically do is do the design for a given platform, then offer the design to manufacturers throughout China, which lets those manufactures get their products on line quickly and provide them to the end users.
Has been in business since 1917. Used to be known as ComTech.
Was profitable in 2006, 2007, 2008, and has been profitable for the first 3 quarters of 2009. Profits for 2009 have not been as great as previous years, but has increased each quarter for this year.
It is 34% insider owned, and 52% institutionally owned.
I believe it is a good longer term investment for those who are patient. Probably not a "multibagger", but has good potential to double.
What do you think about Cogo, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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