The circumstances of Chinese fabless semiconductor company Montage Technology Group Ltd (NASDAQ:MONT) are fascinating to us. If the bull case is correct, the company has rapidly gained market share in the Chinese set-top box market and is well positioned as a memory buffer supplier for LRDIMM, a rapidly growing form of memory critical to emerging cloud computing applications, yet it trades at only 12 times forward earnings. If the bear case is correct, the company's revenue is likely overstated by as much as 70%, sales are shrinking rather than growing, and the company may be trading at something like 15x actual trailing revenue in spite of being an unprofitable fraud. We have reviewed the available evidence, including MONT's...
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