Shares of China Techfaith Wireless Communication Technology Rank Highest in Terms of Price to Cash Flow in the Entire Communications Equipment Industry (CNTF, ZSTN, RIMM, DGIT, BRCD)
Written on Sun, 12/30/2012 - 10:20am
By Andy Smantz
Below are the three companies in the Communications Equipment industry with the lowest price to cash flow ratios. Companies with the lowest ratio present the greatest future value to investors, and many investment experts use this metric as their primary search function to find undervalued stocks and the future big moneymakers in the market.
China Techfaith Wireless Communication Technology ranks lowest with a a price to cash flow ratio of 2.00, making Cntf the #1 on our list of most undervalued stock in the entire communications Equipment industry.
ZST Digital Networks is next and is #2 on our list, with a a price to cash flow ratio of 2.77. The very hot Research In Motion ranks third lowest with a a price to cash flow ratio of 3.07.
DG FastChannel follows with a a price to cash flow ratio of 4.48, and Brocade Communications Systems rounds out our top 5 undervalued stocks with a price to cash flow ratio of 4.65.
SmarTrend recommended that its subscribers protect gains by selling shares of Brocade Communications Systems on October 17th, 2012 by issuing a Downtrend alert when the shares were trading at $5.65. Since that call, shares of Brocade Communications Systems have fallen 6.5%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.
Sentiment: Strong Buy