These positive results and comments drove the stock up by over 50% from the low $3 range to over $5, and the stock now sits at about $4.50. At this price, assuming zero growth in the business, HPJ is trading on a forward P/E of only 7. So again looking at trailing earnings via Google, Yahoo! or Bloomberg is meaningless. New Energy Systems ( NEWN.OB) (formerly known as China Digital Communications) saw a considerable drop in its share price despite posting very solid earnings. Many people have asked me why the stock would drop by 15%-20% despite posting very positive numbers. There are a number of reasons. First, the company reaffirmed full year guidance (rather than raising guidance) despite posting a very strong third quarter. Many investors have taken this to mean that either the fourth quarter will be weak or that the company has no visibility. Second, the company recently filed an S8 filing that granted shares of the company to various consultants. In this case, NEWN gave out shares representing 20% of the company. So despite strong revenue growth, there is still significant dilution to shareholders. Finally, there was no indication that the company had located a CFO or begun the board restructuring process required for a Nasdaq listing, meaning that any such uplisting (which requires an application process) is still months away at least. China Sun Group ( CSGH) is a stock that continues to puzzle me. In October, the company released earnings,which I thought were very solid, along with a notable increase in cash. The stock then sold off from $2.10 down to the mid $1.70s range. The company then made two major announcements that had been eagerly anticipated by investors.