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Author: INVESTigator49 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8104  
Subject: China Digital TV Food for thought Date: 5/25/2012 2:04 PM
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This was a thoughtful posting that I wanted to share further for CAPS:

OK let me start by saying I am not a professional stock trader and will never be one. I look at STV as a gamble like going to a casino and playing blackjack. I am relatively new to STV with a cost average of $3.96 after my purchase today, about $3.69 when you factor in the dividend payment.

So besides the approximant $4.40 per share of cash that they have what I see in STV is the future possibilities. Based on a quick Google search there are .....

1.3 Billion people in china
340 million households
1.2 televisions per household or..
408,000,000 TV's in China

Over the past 9 quarters STV has shipped 38,240,000 cards. Let’s say there is another company that has shipped a few more, 40 million. (Even though STV is by far the market leader) Let's also round STV up to 40 million.

This leaves a future untapped market of 328,000,000 set tops that need to be digitalized by 2015. Again let’s say STV gets half of these that is 164,000,000 cards or a market 4 times larger than what they did the last 9 Quarters. The last 9 quarters STV has been very profitable.

I like to see they are laying the ground work for video cloud services and expanding their portfolio of services.

Again I have not been on the long road down from the teens so I am not that scorned yet by the lack of performance. If this ever does become favorable and starts trading at higher volumes it will take off like a rocket. Heck it went down 23 cents on just over 100,000 shares the other day.

When I gamble I look for a high reward low risk possibility. I see a possible high reward with a small risk in STV. I have a sell order in at $1.50 so my overall risk is $2.19 a share; I see a much higher possible reward than risk here. Who knows maybe they pay another dividend sometime also, even better.

Again best of luck on all your picks and have a great extended weekend.

Cheers
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