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
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
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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