Based on the aggregated intelligence of 150,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, digital television equipment maker China Digital TV
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 TV facts
|
Headquarters (Founded) |
Beijing, China (2004) |
|
Market Cap |
$422.0 million |
|
Industry |
Computer storage and peripherals |
|
Trailing-12-Month Revenue |
$54.7 million |
|
Management |
Co-Founder/CEO Jianhua Zhu |
|
Return on Equity (Average, Past 3 Years) |
18.4% |
|
Cash/Debt |
$232.8 million / $0 |
|
Customers |
Intel |
|
Other Highly Rated Computer Storage Stocks |
EMC |
|
Other Highly Rated Chinese Stocks |
China Telecom |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 807 members who have rated China Digital believe the stock will outperform the S&P 500 going forward. These bulls include dgu004 and iddqkfyou.
Late last year, dgu004 informed Fools that China Digital "is a simple monopoly in the Chinese digital TV market." Our CAPS member concludes: "The digital conversion process in China is supported and sometimes even 'forced' by the government so their revenue/profit has only one direction to go for the coming 3-5 years."
In a pitch from three weeks ago, iddqkfyou also seemed struck by the stock's pretty picture:
This is not some TV manufacturer or wireless television station, they make what allows T.V. systems of the future function, and with their recent investment in OpenV, a Chinese Hulu with tens of millions of viewers, they are positioned to branch into content delivery and advertising.
I really like this choice because it gives me a rare opportunity for leverage: other companies that have seen their earnings hit in this recession are at multi-year highs, so even if I believed in a sustainable recovery, which I still don't, they would still not be attractive buy. This company has a good business and should grow, yet you can pick it up for nothing.
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