This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Sorl Auto Parts: Buy Now, Sell High

NEW YORK ( TheStreet) -- China-based Sorl Auto Parts (SORL - Get Report) stock has fallen 5.8% to $9.30 late afternoon as investors engaged in increased profit taking after the company announced a successful fourth quarter that blew past Wall Street consensus estimates.

Rodman & Renshaw analyst Amit Dayal attributes the stock price fall to profit taking.

"If you look at the volumes over last five days leading up to earnings," they were much higher, Dayal said. On Mar. 29, more than a million shares of Sorl had traded hands, compared with its three-month average volume of about 273,000.

Sorl Auto shot up 5.6% to $10.20 on the day that it reported a spike in its fourth-quarter profit.

Sorl's stock-price drop Thursday isn't much of a concern for Dayal, who said that "fundamentally I'm not really concerned," about the stock. "I would use this as a buying opportunity. It is one of the better component names."

Following Sorl's earnings report, Dayal reiterated his market outperform recommendation for the stock and was raising the price target for Sorl from $14 to $18.

On Mar. 29, Sorl posted net income of $5 million, or 28 cents a share, for the quarter ended Dec. 31. That was nearly triple the $1.8 million, or 10 cents a share, the company earned a year earlier and above the 18 cents a share estimate derived from a Thomson Reuters poll of analysts.

-- Reported by Andrea Tse in New York


Follow on Twitter and become a fan on Facebook.
Copyright 2010 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SORL $1.47 -0.70%
AAPL $94.11 0.44%
FB $102.63 0.71%
GOOG $687.24 0.60%
TSLA $150.16 -0.21%


Chart of I:DJI
DOW 15,901.11 +240.93 1.54%
S&P 500 1,855.66 +26.58 1.45%
NASDAQ 4,317.2860 +50.4490 1.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs