3. LJ International designs, brands, markets, distribute and retails a range of fine jewelry. Apart from specializing in the colored jewelry segment, it also offers high-end pieces set in yellow gold, white gold or sterling silver and adorned with colored stones, diamonds, pearls and precious stones. The company will announce its fourth-quarter and full-year 2010 results on March 21. Net income for the fourth quarter is forecast at $3.6 million on sales of $42.5 million, compared to net income of $2.2 million on $39.2 million sales recorded during fourth-quarter 2009, according to analysts polled by Bloomberg. Earnings per share are seen at 45 cents for 2010, up from 15 cents per share reported during 2009. For 2011, earnings per share are likely to surge by 13% to 51 cents, analysts foresee. The two analysts covering the stock recommend a buy. There are no sell ratings. Analysts polled by Bloomberg expect the stock to gain an average 106% in value from current levels, to $7.
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100.