2. Jinpan International ( JST) makes transformers for infrastructure development.
Numbers: Third-quarter profit soared 82% to $9.4 million, or 58 cents a share, as revenue declined 1.9% to $44 million. Jinpan's operating margin extended from 16% to 22%. Its balance sheet houses $38 million of cash and $26 million of debt. Stock: Jinpan has quadrupled in the past 12 months, outperforming major indices. The stock sells for a price-to-projected-earnings ratio of 14, a 27% discount to the peer-group average. The shares are also cheap based on book value and cash flow. Catalyst: China's $586 billion stimulus has another year of payouts and about 38% is allocated to infrastructure development. Jinpan received an Underwriters Laboratories, or UL, certification in 2009 and is now exporting to developed economies. Consensus: Only two analysts cover Jinpan, but both advocate buying the shares. Roth Capital expects the stock to appreciate 20% to $29. It has gained 39%, on average, during the past three years, landing in the top 4% of stocks we cover.
Shares of China Sky One Medical (Nasdaq:CSKI) have taken a tremendous swing upward. The stock is trading at $3.23 as of 3:41 p.m. ET, 23.3% above Thursday's closing price of $2.62. Volume is at 528,537, 4.3 times the daily average of 122,300.
Shares of China Sky One Medical (Nasdaq:CSKI) have taken a tremendous swing upward. The stock is trading at $2.57 as of 2:25 p.m. ET, 20.7% above Wednesday's closing price of $2.13. Volume is at 151,799, 1.2 times the daily average of 123,500.