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China Techfaith Wireless Communication Technology Limited Message Board

  • topline1 Apr 17, 2013 10:20 AM Flag

    Talk to me about the cash...

    Why has the market discounted the lage stated amount of cash on hand so much? On the surface it looks like the ability to buy for pennies on the dollar. What is below the surface? Are there restrictions on paying a one time dividend? Is it impossible to get the cash out of the country for some reason? What would cause this to be so poorly valued in relation to cash? - Is it predicted continued declines in sales? (In that case why doesn't a raider come in an liquidate the company and put cash in their pocket for doing so?)
    If no one has good reasons (supported with facts) then this looks to be an extremely attractive value play right now.

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    • Actually Cntf has nearly $300 million in cash and the money has indeed been confirmed by auditors.
      The bashers here will try to convince you that the money does not exist but it does. The auditors actually
      visited the banks to confirm the cash. The bashers will constantly and relentlessly tell you the company and
      the cash are a fraud, even if the cash was shoved right under their noses. Just the nature of bashers.
      In addition, Cntf has nearly $100 million dollars in Real Estate and the Company stated that the Real Estate
      should begin producing revenue "in 6-9 months". In addition to that Cntf has a $400 million dollar lawsuit pending against Samsung, that they are 90% likely to win, and that lawsuit comes to Court in August.

      And if that isnt enough, Cntf (at it's current cash burn rate) has enough cash in the bank to be in business for the next 98 years. But of course the bashers are here to convince you that everything is fraudulent so believe what you want. But........if Cntf was fraudulent they would have been gone 2 yrs ago when new accounting practices were initiated and all the fraudulent Chinese companies were smoked out.

      • 2 Replies to purpleyguy
      • This is a ridiculous assessment by both Purpleguy and Albeeguy who I believe are the same person. All of us longs want CNTF to go way back up but we must tell the truth and call it like it is. If they really do have the $300 million why are they not fighting for us the shareholder. It's absurd. I am not a basher but I certainly am very frustrated with this management team and the under $1.00 stock price.. Like I have said before, I should have got out when it hit 1.50 a few months ago and i didn't. Shame on me as I'm now paying the price.. Get off the board Albee and purple as we don't need hype here, just the truth. i know you want it to go up like us all but you need to be more prudent with your post's. You sincerely irritate the hell out of me which is very unlike me!

      • Right, Its the PERFECT stock. Somehow the market is saying it ain't even worth 1/5th of the cash it says it has on hand? Hmmmmm, something just doesn't seem right here?

    • It's either a fraud or the management team in incompetent. It could also be both. This is coming from someone who is 18,000 shares long. I just want to get out before this thing tanks more. My break even is 1.25 and i wish that I had never invested in all these Chinese small caps including CNTF. If they were going to sell to an institutional investor or another company I think they would have done so already. Very difficult reality that unfortunatley looks very bleak for us longs!

      Sentiment: Hold

    • This is a Chinese company that has a management team that has a total disregard for its shareholders. They have shown zero interest in a paying dividend or providing any confirmation of any cash holding they have been claiming. There is no telling what this company is doing since they've only provided an extreme minimum amount of information in press releases or quarterly conference calls (which if you've listen to any of them are completely laughable, even for a Chinese company). The only thing you can know for sure about this company is their Year to year revenues were slashed over the last few quarters and the gaming business they got into was a complete failure. But have the stockholders been updated on any plans of action watching as the stock goes into delisting territory. They apparently have other plans than any that include stockholders being a consideration and that alone should make you avoid this company stock. The market has put a price on this stock as it see fit, and the market tends to be a pretty good judge.

      • 2 Replies to mattbotz
      • The same could be written about APPLE stock right now. APPLE doesnt update shareholders, refused to give out dividends (with over (9 Billion in cash in the bank), and their conference calls were called a joke by shareholders who are now suing the Company. And the APPLE stock has crashed and lost enormous value.

        But APPLE stock will recover. The bashers over on APPLE board say the exact same #$%$ stuff you are saying here, though. Stocks go up and they go down. But #$%$ bashers are always around thinking they have won something and they are soooo smart, when a stock goes down. WHen the stock goes back up, those same morons are nowhere to be found.

        A recent study in the Wall St Journal stated that bashers on message boards are almost always the biggest losers in the stock market because they are people who do not invest and stay invested, which is the way to big riches. They are constantly jumping around in their investments trying to "get some kind of edge" by bashing or pumping on a message board, which is a ridiculous and foolishly unproductive exercise. Jumping around from stock to stock is a proven way to lose huge amounts of money and the study showed that people who bash, also jump around a lot in their investments, which is catastrophic. Poetic justice for the idiots, I say !! Funny stuff.

      • Well written, couldn't do it better.

        Guess Albeeguy went away to pump another stock...

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