China Techfaith: An Immensely Undervalued Stock Likely To Go Private
In this article I will argue that smartphone and social gaming developer and distributor China Techfaith Wireless (CNTF) is an immensely undervalued stock, whose value is being almost completely ignored by the market, and, as such, will likely be the next recipient of a "going private" proposal.
When the internet bubble burst in 2000-2001, and the tech sector swooned almost 80%, the market capitalization of several companies actually fell well below the net cash on their balance sheets. This led to a number of them receiving "going private" proposals from management or offers from opportunistic buyout firms. Those who had the foresight to purchase these stocks before the offers were on the table were rewarded handsomely.We are currently experiencing a similar opportunity in the stock market, only this time it is in regard specifically to certain small-cap Chinese stocks listed on the U.S exchanges. This is noComplete Story »