China Architectural Engineering (CAEI)

Stock of the Day
China Architectural Engineering, Inc.
Wednesday’s Closing Price: CAEI – $10.75

Sector: Industrial Goods
Industry: General Contractor
52-week Price: $4.75 – $27.25

June 6, 2008 Business Wire:

“China Architectural Engineering, Inc. (CAE) (AMEX:RCH), a leader in the design, engineering, fabrication and installation of high-end building envelope systems, today announced that the Company will ring the opening bell at the NASDAQ MarketSite in New York City’s Times Square on Thursday, June 12, 2008 at 9:30 a.m. EDT. The Company will commence trading on the NASDAQ Global Select Market under the ticker symbol “CAEI” on June 10, 2008.”

Although the company has “China” in its name, 45% of its revenue comes from Australia, Dubai, Qatar, the U.S. and Europe. Business week noted that growth should last well beyond the Olympic games this year because of robust orders in foreign markets.

The company’s order backlog is said to be at $100 million or 1/5th of its current market cap, a nice card to have up its sleeve in today’s world market.

The gap-up on the chart in May on huge volume concerns me when attempting to establish a solid risk/ reward trade strategy. I would like to see the gap fill prior to entering a position but I do see support along the 50-d m.a. or even $8 per share. I am going to set-up the “ideal trade” using the current moving average so we can cover a potential pull-back to the gap-up area noted on the charts.

Potential Trade Set-up:
Entry: $7.00
Risk is set at 1.0% of total portfolio or $1,000 of $100k
Stop Loss is 12% or $6.16 ($6.00 area)
Number of Shares: 1,190
Position Size is $8,334
Risk is $0.84
Target is $13 for a 7-to-1 risk/reward ratio

Key Fundamental Numbers:
Market Cap.: $547M
Outstanding Shares: 51.1M
EPS Growth (MRQ): 178%
EPS Growth (TTM): 135%
Revenue Growth (MRQ): 76%
Revenue Growth (TTM): 50%

Earnings per Share (EPS):
$0.50 Next year, +39%; High estimate $0.64, +77%
$0.36 current year, +71%
$0.21 last year, +50%
$0.14 previous year

VisionChina Media, Inc. (VISN)

Stock of the Day
VisionChina Media, Inc.

Tuesday’s Closing Price: VISN – $18.84

Sector: Services
Industry: Advertising
52-week Price: $5.27 – $23.00

The stock is starting to pull back to the 50-day moving average which will offer us a solid entry opportunity with an excellent risk-to-reward ratio. If my swing target method can offer any accuracy whatsoever, we could be looking at a 10-to-1 risk-to-reward trade. A buy in the $16 to $17 area could also provide us a 5-to-1 risk-to-reward ratio assuming it can get back to $23 without violating the stop.

Not bad if you ask me. I will be taking on the trade if it drops below $17 and holds support at the 50-d moving average. Maybe it will work, maybe it will flop. As I say every time (like a broken record): take the trade and follow the rules. That’s all we can ask!

Take a look at some previous posts I have made with VISN highlighted:

Hot Momentum Stocks

A couple more HOT momentum stocks:
VISN – 22.53, VisionChina Media Inc. has also been tearing up my nightly screens but it slipped past any and all ideal entry points for me as a trend trader. It is now in the hands of the day traders with a year-to-date gain of 146%, a 148% gain over the past three months and a 42% gain over the past month.

Top Rated Stocks

Other High Rated Stocks in my System:
VISN – 18.88, VisionChina Media, Inc.

Potential Trade Set-up:
Entry: $16.00
Risk is set at 1.0% of total portfolio or $1,000 of $100k
Stop Loss is 10% or $14.72
Number of Shares: 781
Position Size is $12,500
Risk is $1.28
Target is $30 for a 10-to-1 risk/reward ratio.
A move back to $23 with a buy at $16 would be a 5-to-1 risk/reward trade.

Institutional Analysis:
Held By Institutions: 43.21%
Total Held by Institutions: 48
Money Market: 29
Mutual Fund: 17
Other: 2

New Positions: 27
Positions Sold: 8
Shares Held: 36.97M
Shares Held Previous Period: 32.43M

Shares Bought: 6.82M
Shares Sold: 2.32M
Value of Shares Bought: $133.2M
Value of Shares Sold: $45.19M

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Hot Momentum Stocks

SOL Remains HOT after my post titled SOL is ‘En Fuego’

SOL – 27.80, ReneSola Ltd. was up 6.76% Monday on volume 325% larger than the average. I told you last week that this was one momentum stock you should not ignore. It’s now up almost 30% in three days after my Thursday morning post. It was up 15% last Wednesday, one day prior to me highlighting the stock which is why I will repeat that stocks in motion typically stay in motion (simple physics – right).
5/14/08:

Renesola Ltd (SOL), $21.67, is on fire over the past several weeks since its IPO debut in January. Volume has been exploding as the stock is up almost 200% since it’s low in late March. I have been watching the stock as it has crossed dozens of nightly screens but decided not to post it to the blog until now.

If you want momentum, SOL is currently providing it. The stock was up more than 15% today on volume 409% larger than the average. At least 11 accumulations days have occurred over the past month as the stock started to log new all-time highs.

A couple more HOT momentum stocks:
VISN – 22.53, VisionChina Media Inc. has also been tearing up my nightly screens but it slipped past any and all ideal entry points for me as a trend trader. It is now in the hands of the day traders with a year-to-date gain of 146%, a 148% gain over the past three months and a 42% gain over the past month.

CSUN – 13.06, China Sunergy Co. is now up more than 47.74% over the past month but is still down 20% from my original 2008 post of $16.15 on January 4, 2008 (however, I did state: Ideal Entry: $12.00). The three month gain is 80.93% with a peak of 97% – I timed this one wrong but saw the trending potential back at the turn of the year. Patience – a must in this business. CSUN did reverse Monday – the first red flag in May.
1/4/08:

China Sunergy (CSUN) is part of a booming solar industry that includes stocks such as the ones listed below; all head lined by FSLR, a stock that is up more than 700% over the past year or so.

FSLR – $265.87
STP – $88.22
SOLF – $36.95
YGE – $38.02 (another stock I am looking to add)

One last word: watch the daily action because the summer months are coming – sell off time (hint, hint). Have all stops set and always look for red flags! Enjoy the momentum while it lasts but NEVER let a solid gain slip away.

SOL is ‘En Fuego’

Renesola Ltd (SOL), $21.67, is on fire over the past several weeks since its IPO debut in January. Volume has been exploding as the stock is up almost 200% since it’s low in late March. I have been watching the stock as it has crossed dozens of nightly screens but decided not to post it to the blog until now.

If you want momentum, SOL is currently providing it. The stock was up more than 15% today on volume 409% larger than the average. At least 11 accumulations days have occurred over the past month as the stock started to log new all-time highs.

The stock is the latest in my pursuit of profits in Chinese, Solar and IPO combinations over the past 12-15 months. JASO was the original poster-child but SOL is now catching my attention. I don’t own shares as of this writing but that could change on the proper entry opportunity (I don’t have one at this time but I will update if and when it happens).

ReneSola, Ltd., through its subsidiaries, engages in the manufacture and sale of solar wafers and related products in the People’s Republic of China. It offers feedstock, ingots, and wafers for the solar industry. The company sells solar wafers to Chinese and international PV cell manufacturers.

TeleTech Holdings Inc.

Stock of the Day
TeleTech Holdings Inc.
Wednesday’s Closing Price: TTEC – $22.93

Sector: Services
Industry: Business Services
52-week Price: $16.17 – $39.06

TeleTech Holdings, Inc., together with its subsidiaries, provides onshore, offshore, and work-from-home business process outsourcing services. Its services include the transfer of its clients’ front and back office business processes to its delivery centers or work-from-home associates.

The stock is an interesting play that could provide rewards based on increasing earnings, revenues and a 10-week/ 30-week positive crossover. The stock was flagged in a technical screen I ran this week looking for strong candidates that made the positive 10/30-week crossover.

The recent slump in the economy may hurt the immediate potential of the company as revenues could stall or even drop but that shouldn’t last for long (or so I think).

Anyway, this stock is a pure trend play based on technical analysis, a possible rebound that I will test with an entry in the $22 area. It’s not my ideal IPO momentum trade or a stock making a new high but this type of position works for me in this market environment.

$10,000 invested five years ago would be $57,398 today

Potential Trade Set-up:
Ideal Entry: $22.00
Risk is set at 1.0% of total portfolio or $1,000 of $100k
Stop Loss is 10% or $19.80
Number of Shares:455
Position Size is $10,000
Risk is $2.20
Target is $40
Reward/ Risk: Possible 8-to-1 (long term)

Institutional Analysis:
Held By Institutions: 59%
Total Held by Institutions: 453
Money Market: 150
Mutual Fund: 291
Other: 12

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