Please ensure Javascript is enabled for purposes of website accessibility

China Digital TV's Shares Dropped: What You Need to Know

By Anders Bylund - Updated Apr 6, 2017 at 5:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this meaningful? Or just another movement?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of digital smart card manufacturer China Digital TV (NYSE: STV) got a screen full of static today, falling as much as 17.2% on heavy trading.

So what: Last night's third-quarter report showed 22% year-over-year sales growth and flat earnings, but Street estimates had pointed to slightly higher earnings. Share prices have fallen more than 50% over the last year, even though this was the first bottom-line miss since 2009.

Now what: CEO Jianhua Zhu called this "another solid quarter" with "robust demand" and strong overall growth in the Chinese digital TV industry. Fellow Fool Rick Munarriz calls the company "a thinking investor's play on China's growing middle class," and I agree. There's nothing wrong with the business, and this Rule Breaker only becomes a better value as share prices fall for no sensible reason.

Interested in more info about China Digital TV? Click here to add it to My Watchlist.

Fool contributor Anders Bylund holds no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of China Digital TV. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

China Digital TV Holding Co., Ltd. Stock Quote
China Digital TV Holding Co., Ltd.
STV

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
402%
 
S&P 500 Returns
129%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.