As earnings season kicked off last week, it was a busy time for the GeoTeam. The market was spurred by encouraging news from the first batch of companies to release last quarter’s earnings and some with year-end results. While most of the earnings releases came from U.S. companies, there was still plenty of action in the China space. Several of our GeoSpecials and/or GeoBargains hit new highs last week. At the same time, other Chinese companies struggled due to the ever-increasing spotlight on reverse mergers and fraudulent activities in the space. The GeoTeam has been following the on-going controversies carefully and will be continuing to conduct its own investigation into the subject for the benefit of its readers. Our research into several companies has yielded both great investment opportunities as well as stocks to stay away from. Below is a brief summary of the week’s news.
Movers & Shakers:
NANO: GeoSpecial hits new 52-week High @ $17.32. Check out the Geoblog post mentioning NANO.
AEIS: GeoSpecial up 12.63% for the week @ $15.20. Here is our July 29th GeoResearch note on AEIS.
AMOT: A New GeoSpecial attains new 52-week High @ $8.15. Check out the January 14, 2011 Alert.
AXTI: Former GeoSpecial up 11.51% for the week @ $11.70. Read the Jan 3rd GeoResearch note.
BDR: GeoSpecial is up 8.73% for the week @ $2.50. We anticipate a challenging 4th quarter slowdown before possibly ramping up in 2011.
CHGI: Stock is up 24.08% for the week @ $2.40. We initiated a short term trading position on CHGI two months ago @ $0.67 upon announcement of securing a favorable loan agreement.
CVU: GeoBargain is up 4.6% for the week @ $14.70. CVU is one of our favorites for 2011. Here is a recent blog entry concerning CVU.
FRD: GeoSpecial is up ~4% for the week @ $9.10. Check out the November 19th, 2010 note regarding FRD.
GTEC: GeoSpecial is up ~4% for the week @ $17.63. Check out GTEC on our Geo Power Ranking portion of the blog.
LXU: Stock is up 8.71% for the week @ $29.82. Check out the Jan 3rd note and announcement of preliminary trading position on LXU.
MERC: GeoSpecial hits new 52-week high @ $8.50. Here is our research note from Dec 22nd, 2010.
MPAA: GeoSpecial hits new 52-week high @ $14.68. Read our research note from November of 2009. We took an initial position @ $7.05 as a GeoSpecial. The stock is now getting pricey after a double.
NAV: Stock hit a new 52-week high @ $63.10. NAV is considered an anomaly trade and traded down on misinterpreted positive news.
PMUG: GeoSpecial hits new 52-week high @ $15.50. PMUG became a Geospecial @ $6.15.
TIII: Stock is up 11.56% for the week @ $3.43. Check out our research note from November 26th. We initiated our position @ $2.15.
TRIT: GeoBargain is up ~6% for the week @ $13.96. TRIT has been a wild ride and became a GeoBargain @ $14.24. The stock has regained lost ground and, we believe, is poised to go higher. Here is our blog post concerning TRIT.
CCME: Stock is up 12.64% for the week @ $19.63 on encouraging news. CCME is considered a Tier 1 stock.
KUN: Stock is up 55.52% for the week @ $1.49. We recently posted an alert on KUN.
Disclosure: Long all stocks except AXTI, KUN.
Penny Stock Ideas:
For the more aggressive investor, the GeoTeam suggests taking a look at these two penny stocks:
- China Runji Cement (CRJI)- click here for message board post
- China Intelligence Information (IICN)- click here for message board post
Disclosure: Long IICN
Recent Portfolio Additions and Removals:
Positions in AMOT, AERL, TIF(anomaly trade), and NAV were added to our portfolio. Our position in MASC was closed out at 6.15. This was a short-term trade with a 17% return.
Our AERL trade was a momentum play, while both TIF and NAV were ‘anomaly’ plays. Stay tuned for an upcoming Geo article concerning the concept of anomaly trading.
Interesting Developments & GeoResearch
- See article by admitted short seller. Mentions China Sky One Medical
- China Valves Tech (NASDAQ:CVVT) Responds to Allegations
- China Information (NASDAQ:CNIT) Announces $39.6 Million in Newly Signed Contracts During the Fourth Quarter of 2010
- Keyuan Petrochemicals (NASDAQ:KEYP) Receives Approval for NASDAQ Global Market Uplisting
- Telestone Technologies (NASDAQ:TSTC) responds to recent article.
- Citron issues short “hit piece” on China Valves Tech (NASDAQ:CVVT)
- Ballantyne Of Omaha (NYSE AMEX:BTN) increases penetration into China
- China Ceramics Co Ltd Common (NASDAQ:CCCL) Approved for NASDAQ Uplisting
- China Transinfo Tech (NASDAQ:CTFO) Announces RMB 12 Million Contract with Ministry of Transportation
- GeoContributor Zack Buckley reports his findings on his research trip to China.