After a successful swing trade alert issued on Highpower International Inc (NASDAQ:HPJ) which climbed 75% in seven trading days, our China team is hot on the trail on new Information Arbitrage alerts related to two U.S. listed China Stocks. The research note on the potentially more lucrative trade is now available. We think the play could yield a maximum return of 140%. If you’re curious what Information Arbitrage looks like, here it is…
HPJ Swing Trade
We define Information Arbitrage as intel…
“…in an era where information overload has actually made it more difficult for investors to locate profitable information. An Information arbitrage exists when a disconnect between stock prices and available public information on a company is noticeable, and monetarily worth pursuing. By combining the tenets of growth + value, GeoInvesting’s long biased research has produced over 50 stocks that have more than doubled and over 40 stocks that have been acquired.” ~Maj Soueidan
HPJ was trading at $2.80 and a P/E of 7 on management’s 2016 earnings per share (EPS) expectations, preannounced on March 7, 2106. The press release went on to disclose the termination of an agreement that would have resulted in the sale of the company’s main operating asset. We leaned on the expertise of our in-house China team to explain what the termination could mean for HPJ’s stock price. They quickly informed us that the termination was good news in that the transaction would have valued HPJ at $2.85. But with the transaction now off the table, they said it could potentially unlock immediate value and stock price appreciation.
With the added benefit of our on-the-ground China team’s previous positive due diligence on HPJ, we let our premium members know that we were initiating a swing trade in the stock. This is one of those swings that required a little patience since, as we stated, it would probably take time for investors to do the calculations and make the same determinations as our team. We thought the stock could soon reach $4.00. Since our alert, HPJ management attended a conference and issued its final 2016 results. And as you can see the stock responded, reaching $4.90/share only 7 trading days since our initial note.
Just in case you were wondering how active we are in our communication with the GeoInvesting premium community, here are some morning email and research excerpts about our HPJ trade, the first of which was preceded by a morning Call To Action Alert conveyed via email:
- Real Estate Dividend Stock On Our Radar: Limited Downside and 58% Discount to Book Value
- Here’s Why I Finally Took a Long Position in The Eastern Company (EML)
- Could This Speculative Information Arbitrage Play Be Worth An 8 Times Current Price?
HPJ Research/Swing Trade Updates
We are unaware of any research site that provides this type of institutional grade research offered to retail investors. It is usually research that is only reserved for clients of Blue Chip Wall Street investment banks.
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