Quick Win by the Algorithm

On June 9th, 2017, the I Know First algorithm issued a bullish forecast for China Techfaith Wireless Communication Technology Ltd. (CNTF). CNTF had a signal of 37.38 and a predictability of 0.15. As a result, in accordance with the forecast, the company’s stock increased by 21.77% in just 3 days, showing a quick win by the algorithm.

China Techfaith Wireless Communication Technology Ltd. engages in the original design, development, and sale of mobile handsets in the People’s Republic of China and internationally.  It operates through Mobile Phone and Real Estate segments. Its services include industrial design, mechanical design, software design, hardware design, hardware components and software sourcing, testing, quality assurance, pilot production, and production support. The company was founded in 2002 and is based in Beijing, the People’s Republic of China. 

CNTF executed a dramatic turnaround in financial results by diversifying their business assets. Apart from the mobile industry, CNTF also owns and manages its real estate portfolio. This portfolio consists of three completed buildings in Hangzhou, two completed buildings in Shenyang and an assortment of construction operations that are in progress.

Furthermore, on April 12th, 2017, CNTF landed a real estate deal with Beijing Hongkungu Investment Company Limited called “The Agreement”. This deal included the sale of InfoExcel’s 100% equity stake in Techfaith Ltd. to Hongkungu for the equivalent of $144 million USD. The Agreement will provide an instant beneficial cash inflow. This influx of cash will allow CNTF to strengthen their existing mobile business while allowing for future investment flexibility. Additionally, a deal of this magnitude helps mitigate risk associated with ongoing construction and market cycles.

This bullish forecast on CNTF was sent to current I Know First subscribers on June 9th, 2017. 

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.