More Thoughts on China Techfaith Wireless (CNTF) 2 comments
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Last week we received a comment regarding the weak stock price performance of mobile handset designer China Techfaith Wireless (ticker: CNTF). Since then the stock has continued to fall. A look at some possible explanations for the sharp price drop here (from readers of The China Stock Blog). CNTF's stock price performance:
CNTF chart.

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I do not agree because:
1) That cash is not totally overlooked. At least Kaufman's analyst should be aware of it.
2) It's hard to say that the cash itself will have same revenue generating rate as the rest part of the company.
Actually a $22 target looks more reasonable from P/E point of view. I think the $15 target is on the conservative side. A healthy growth company should have more than 20x P/E. However, I just don't buy your approach.