Dreamliner

China Digital TV Holding Co., Ltd. Q2 2008 Earnings Call Transcript

First of all, I don't think CFO talked the same language as analysts did, otherwise he wouldn't have repeated the questions so many times. Didn't analysts ask the questions professionally?

Then, reduced corporate income tax wouldn't help the operating performance in 2009. It is just accounting game even it will enhance STV's bottomline. Interestingly, isn't STV treated as New Tech enterprise? I can't imagine a company based on one of the top schools in China is not a New Tech one.

If the market share/revenue is hard to grow as it should be for a growing company, I sugguest the Company put more effort on managing the cost. I am not sure if they implement Project Management process or not, a lot of companies only focus on budget vs. actual without considering schedule variance of which could cause overruning the cost indirectly.

In general, STV should focus on operating performance both on top-line growth and bottomline enhancement. Buying back shares doesn't help the core business.

China Digital TV Issues Guidance 'Disaster'

I bought some shares at 30 bucks the first day of its IPO. The day after its price surged to $50 level and Cramer commented he discovered another BIDU......

After couple of months, we can tell its stock can't be categorized "Growth". In this market, you can't find a growth stock with PE of 10s. See, that of BIDU and FSLR is around 100. VMW was recently penalized due to the competition which hurts its growing prospect, so its PE has dropped to 40s and may keep dropping. The future of STV depends on if it can be defined as growing company or not.

I used to trust its management team as it contains a group of talents, but not any more:

Almost all of C-Level executives are Tsinghua graduates and their entire career has been with this same company (or its parent). Obiviously there is no diversification and out-of-box thinking. They probably are proud of that Mason Xu - their "kid" CFO can represent a model of "diversified experience" and "International Exporsure". Dipping into his brief Bio, you can tell this is not the case.

Mason (Legal name probably is still Liang as he may not spend 100 bucks in US court to have the name changed) is a Tsinghua graduate, working as head of sales with this college-based company after graduation, definitely no diversification and out-of-box thinking then. His golden credential is MBA from HBS without any US working experience. He probably doesn't know much about NCAA and Rose Bowl, may surprise Big-10 has 11 teams. I believe many of his former co-workers in Intel China who haven't had chance to study in US must understand Chinese market much better than he does. What doe one year venture capitalist role in China mean? I don't see much value there.

I bet STV needs a CFO with more corporate financial management experience and creativities. Unless, this company will be acquired by any of media conglomerate of which Mason's type of CFO can utilize his connection through HBS alum to secure a better deal.