thor2

More Thoughts on China Techfaith Wireless (CNTF)

I'm not convinced by your reasoning. According to you, 15$ target is used as baseline. On top of that, assuming people totally overlooked the 137M cash, then the 'invisible' cash should have same earning ability as its enterprise value.

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.