4-Star Stocks Poised to Pop: China Digital TV

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, digital television equipment maker China Digital TV (NYSE: STV  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at China Digital's business and see what CAPS investors are saying about the stock right now.

China Digital facts

Headquarters (Founded)	Beijing (2004)
Market Cap	$277.6 million
Industry	Computer storage and peripherals
Trailing-12-Month Revenue	$98 million
Management	Co-Founder/Chairman/CEO Jianhua Zhu CFO Zhenwen Liang
Return on Equity (Average, Past 3 Years)	13.4%
Cash/Debt	$167.6 million / $55.2 million

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96.5% of the 987 members who have rated China Digital believe the stock will outperform the S&P 500 going forward. These bulls include zman4money and reverer36.

Earlier this month, zman4money tapped China Digital as a clear bargain opportunity:

[China Digital] has a [P/E] of 8 even though it is the leader in its field and will capitalize on the growing chinese middle class. This has a very small risk with an enormous upside. Also, dont overlook the extremely shareholder friendly management.

Over the next five years, in fact, China Digital is expected to grow its bottom line at a brisk rate of 20% annually. That's faster than industry peers like Dell (Nasdaq: DELL  ) (7%), Motorola Solutions (NYSE: MSI  ) (10%), and Texas Instruments (NYSE: TXN  ) (11%).  

CAPS member reverer36 expands on the outperform argument:

As the Chinese government continues to soften its stance toward letting the western world in while adopting and embracing new technology, STV is perfectly positioned to soar as consumer demand for digital, satellite, and mobile services grow at an exponential rate. Additionally, last years $6 million dollar cash investment into Shanghai-based 3DiJoy which develops advanced motion-interactive software and wireless remote controls, turning STBs and PCs into motion-sensing gaming consoles, also gives me an optimistic view of this company's future.

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