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 (NYS: 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|
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.
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 (NAS: DELL) (7%), Motorola Solutions (NYS: MSI) (10%), and Texas Instruments (NYS: 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.
What do you think about China Digital, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of China Digital and Texas Instruments. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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