This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

China Info Tech Plunges on CFO Resignation

Stocks in this article: CNIT CCME.PK LFT CAGC.PK

NEW YORK ( TheStreet) -- Shares of China Information Technology (CNIT) plummeted on Friday after the company announced the abrupt resignation of Chief Financial Officer Jackie You Kazmerzak.

Kazmerzak is leaving the company on Monday to "pursue another opportunity." China Information said Eva Liu, its financial controller, will manage daily financial operations in the interim as it looks for a replacement for Kazmerzak, who joined the company in August 2009.

The stock was the biggest percentage decliner on the Nasdaq, dropping 62 cents, or 24.3%, to $1.93. Volume of 3.2 million is more than five times the issue's trailing three-month daily average of roughly 665,000. The volatile shares have ranged between a low of $1.77 and a high of $2.35 during Friday's session.

Year-to-date, the stock is down more than 50%, and at current levels, it's fallen 71.5% since hitting a 52-week high of $6.78 on Oct. 15.

Friday's market reaction reflects investor nervousness about investing in China following accusations of accounting issues at a number of public companies based in the country in 2011, including China Agritech (CAGC.PK), China MediaExpress (CCME.PK), and Longtop Financial (LFT).

"We will take the time necessary to ensure that we find the best possible candidate to build on Jackie's accomplishments," said Jiang Huai Lin, the company's chairman and CEO. "We remain fully committed to the highest levels of transparency and corporate governance."

On May 10, China Information reported non-GAAP earnings of $7.4 million, or 14 cents a share, for its fiscal first quarter ended March 31, up from a year-ago equivalent profit of $6 million, or 12 cents a share. Revenue rose 6.5% year-over-year to $26.7 million in the quarter from $25.3 million in the same period a year earlier.

The company, which provides information technology services and sells hardware and software products, also reiterated an outlook for an adjusted profit of $42 million to $45 million on revenue of between $165 million and $187 million.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.

>To submit a news tip, send an email to:

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs