Replies to post #79090 on China Growth Stocks

[ratobranco]

CNTF - b/c investors don't look at cash. One knock on the company is that they are very conservative with their cash. They don't seem to want to do anything with it, like buy back shares.

I think you can trust that they are legit b/c (1) they have not done secondary offerings (as so many other cash rich companies, i.e., CELM, CCME, CBEH, ZSTN, etc. have done) and (2) they reported heavy losses in the past that occurred for well-defined fundamental reasons. So they tell the truth.

When in their histories have CELM, CCME, CBEH, or ZSTN ever reported losses?

[Traderfan]

CNTF, first of all I would never ever look at yahoo for any financial data. Yahoo has so many errors in their data it's ridiculous.

CNTF is a foreign filer so they haven't filed their 20F yet. They have plenty of time for this to do. Just check the latest earnings PR and when you scroll down you have all the relevant data. They had about 200 million in cash at the end of 2010 (more by now already) and from what I know they have about 54 million ADR's out there, so that would mean they have about 3.80 in cash but by now they already have more cash then at the end of 2010.

http://finance.yahoo.com/news/TechFaith-Reports-Fourth-prnews-816369446.html?x=0&.v=1

[palindromy]

CNTF - It is trading at cash because the management screwed up badly on the last cycle. The IPO'd at 16 and the business basically died. This is a new cycle, new business and a new set of investors/believers will come in as they prove their numbers quarter of quarter. We have had 4 quarters now showing that their new business plan is working at least for the mobile phone business.
The wildcard is the gaming/console business and if they can leverage that cash/expansion properly this time.