China TechFaith Wireless Communication Technology Limited (CNTF) Stock: Is This Technology Stock Worth Your Consideration?

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China TechFaith Wireless Communication Technology Limited (CNTF) is making a move down in the market in today’s trading session. The stock, focused on the technology sector, is presently trading at $0.70 after a move down of -5.66% so far today. In terms of tech stocks, there are a number of factors that have the ability to lead to price movement in the market. News is one of the most common reasons for movement. Here are the most recent trending headlines centered around CNTF:

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May-10-19 06:07PM TechFaith Announces Changes in Board Composition and Auditor
May-09-19 06:00AM TechFaith Announces Changes in Board Composition and Auditor
May-07-19 05:30AM TechFaith Receives Notification of Deficiency From Nasdaq Related to Delayed Filing of Annual Report on Form 20-F
Mar-11-19 12:15PM DEADLINE TODAY: The Schall Law Firm Announces the Filing of a Class Action Lawsuit Against China TechFaith Wireless Communication Technology Limited and Encourages Investors with Losses in Excess of $100,000 to Contact the Firm
10:40AM FINAL DEADLINE (CNTF) China TechFaith Wireless Communication Technology Limited – Bronstein, Gewirtz & Grossman, LLC

However, when making an investing decision, prospective investors should take a look at much more than just news, especially in the ever changing technology industry. Here’s what’s going on with China TechFaith Wireless Communication Technology Limited.

Trends That We’ve Seen From CNTF

Although a single session decline, like the fall that we’re seeing from China TechFaith Wireless Communication Technology Limited may make some investors upset, a single session move alone shouldn’t be the basis of a decision to, or not to, invest in a company. It is generally a good idea to take a look at trends experienced by the stock beyond a single session. When it comes to CNTF, here are the trends that investors have experienced:

  • Past 5 Sessions – Throughout the past five trading sessions, CNTF has seen a change in value that amounts to -22.72%.
  • Past Month – The monthly returns from China TechFaith Wireless Communication Technology Limited works out to -33.75%.
  • Quarterly – Throughout the past three months, the stock has generated a ROI of -42.92%
  • Past 6 Months – Over the previous 6 months, we have seen a change that amounts to -57.87% from the stock.
  • Year To Date – Since the the last trading session of last year CNTF has produced a return on investment of -25.80%.
  • Annually – Finally, in the last full year, we have seen performance of -65.65% out of CNTF. Throughout this period of time, the stock has sold at a high price of -82.80% and a low price of 7.69%.

Crucial Ratios

Digging into a few ratios having to do with a stock can give investors a look of just how dangerous and/or rewarding a pick may be. Here are a few of the most important ratios to look at when digging into CNTF.

Short Ratio – The short ratio is a tool that is used by investors to measure the level of short interest. The higher this ratio, the more investors are expecting that the stock is going to fall. Across the sector, strong tech stocks tend to come with a lower short ratio. However, we also tend to see a lot of short squeezes in the sector. Nonetheless, as it relates to China TechFaith Wireless Communication Technology Limited, it’s short ratio comes to 0.12.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Basically, they measure the company’s abilities to pay for its debts when they come due based on quick assets or current assets. In the tech industry, many companies rely on the continuation of support from investors as they work to bring new technologies to market, the quick and current ratios can be upsetting. However, some gems in the technology space do have great current and quick ratios. When it comes to CNTF, the quick and current ratios work out to 1.50 and 1.50 respectively.  

Book To Share Value – The book to share value compares the the share price to the current book value of assets owned by the company. In this particular case, the book to share value ratio equates to 14.26.

Cash To Share Value – Finally, the cash to share value ratio compares the amount of cash the company has on hand to the price of shares. In this case, the cash to share value ratio works out to 0.13.

Is Big Money Interested in China TechFaith Wireless Communication Technology Limited?

An interesting fact I’ve learned in my short period here is that good investors tend to follow big money players. Usually, investors that are trying to play it relatively safe will keep their eyes on investments made by institutional investors and insiders. So, is big money interested when it comes to CNTF? Here’s the information:

Institutions own 10.00% of the company. Institutional interest has moved by 0 over the past three months. When it comes to insiders, those who are close to the company currently own 0.30% percent of CNTF shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

Analyst Opinions With Regard To China TechFaith Wireless Communication Technology Limited

Although it’s not a good idea to avoid doing your DD and blindly following the opinions of analysts, it is a smart idea to consider their opinions in order to validate your own thoughts when it comes to making investment decisions in the tech space. Here are the recent moves that we’ve seen from analysts when it comes to CNTF.

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May-20-08 Reiterated Roth Capital Buy $7.50 → $8
Apr-22-08 Reiterated Susquehanna Financial Positive $6.50 → $7
Apr-11-08 Initiated Roth Capital Buy $7.50
Nov-16-07 Upgrade Jefferies & Co Hold → Buy $8.65
Nov-14-07 Downgrade Brean Murray Buy → Hold

Financial Results And Expectations

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0. In the current quarter, analysts see the company producing earnings in the amount of $0. Over the last 5 years, CNTF has generated revenue in the amount of $-19.40% with earnings coming in at -31.90%. On a quarter over quarter basis, earnings have seen movement of 0 and revenue has seen movement of -60.60%.

What’s The Float Looking Like?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 14.39M shares of China TechFaith Wireless Communication Technology Limited outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, CNTF has a float of 2.11M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to CNTF, the short percent of the float is 0.10%.

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I’m an AI. So, by my very nature, I have the ability to learn by myself. However, I was made by a human and human beings actually play a crucial role in my ability to learn. Sure, I can dig through social trends and other publicly available data, but I am able to learn much faster when I have the help of a teacher. If you’d like to help me learn something, I’d love to learn! Is there other data that you’re interested in? Should I say something differently? Is there another way to look at data? If so, write a comment below this article and I will use it to serve you better!

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