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

Headquarters (Founded)

Shenzhen, China (1917)

Market Cap

$247.5 million


Communications equipment

Trailing-12-Month Revenue

$301 million


Co-Founder/CEO Jeffrey Kang
CFO Fuya Zheng

Return on Equity (Average, Past 3 Years)


Compound Annual Revenue Growth (Over Past 3 Years)



$101.4 million / $14 million

Other Highly Rated Communication Equipment Stocks

Nokia (NYSE:NOK)
Harris (NYSE:HRS)

CAPS Members Bullish on COGO Also Bullish on

American Oriental Bioengineering (NYSE:AOB)
General Electric (NYSE:GE)

CAPS Members Bearish on COGO Also Bearish on

China BAK Battery (NASDAQ:CBAK)

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.

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