Wednesday, December 2, 2009

HPJ and NVMI are in Bullish Trend

Hongkong High Power Technology (HPJ) - HPJ manufactures and sells consumer batteries and industrial batteries, which are designed for electric bikes, power tools, and electric toys. Read more here. In the 3rd quarter of 2009 they recorded a provision for income taxes of $529,200 compared with provisions for income taxes of $35,700 for the third quarter 2008 and $229,000 for the second quarter 2009. Read more about here

Net income for the third quarter of 2009 was $2.4 million, or $0.18 per diluted share, based on 13.6 million weighted average shares outstanding. This compares with third quarter 2008 net income of $289,400, or $0.02 per diluted share, based on 13.6 million weighted average shares outstanding, and second quarter 2009 net income of $969,000, or $0.07 per diluted share, based on 13.8 million weighted average shares outstanding.

Last Quarter EPS % Change 800%
Last 3 Qtrs Avg EPS Growth 263%
Next Quarter EPS Estimate % Change 350%

This stock will reach double digits if the same fundamentals continue in the coming quarters. IBD's composite rating for HPJ is 92. I added a small quantity at $5.

Nova Measuring Instruments Ltd (NVMI) - NVMI engages in the design, development, and production of integrated process control metrology systems, as well as design, manufacture, and sale of stand-alone metrology used in the manufacturing process of semiconductors. Read more here

Highlights for the Third Quarter of 2009
- Total revenues of $11.4 million, up 64% sequentially and 29% from the third quarter of 2008
- Gross margins of 48%, up from 41% in the second quarter of 2009 and 24% in the third quarter of 2008
- Record high quarterly GAAP net income of $1.7 million, or $0.08 per diluted share

Read Management's bullish comments here

As per IBD EPS changed 200% last quarter and IBD's composite rating for NVMI is 96, which is considered to be very good. Based on the future projections, this stock should be trading around $8. I entered NVMI at $4

Amico Games Corp (AMCG.OB) - Amico Games Corp recently entered into a binding share exchange agreement to acquire Galaxy Software Limited, a private Chinese company specializing in the development and distribution of multiplayer games for mobile phones. Once closed, this acquisition will give Amico access to the revenue and profits of Galaxy as well as expanded business opportunities in the mobile gaming industry in China, the world's largest growing mobile market.

Analysis - This is a risky trade because AMCG will see profits only if it acquires Galaxy Software otherwise all bets are off! If AMCG closes the deal successfully then I think the stock will shoot to $2 or eve more based on the positive financials, which will be released after the deal is done. I took a position at .52 today.

Management's comments: "We are thrilled to bring these two companies together," said Mr. Liu, president of Galaxy Software and Amico. "Galaxy has been successful in becoming one of the leading players in the mobile gaming industry in China and with the explosive growth expected out of the Chinese telecommunications market, we are very happy to be able to expose North American investors to an exciting, profitable and quickly expanding company."

A general Caution and Advise -As I always advise in my posts, Do not chase stocks. please keep in mind that I am not a Stock Market Analyst or an Investment Adviser to count on my recommendations/alerts. As always please do your DD before investing or speculating, start with a small position, always keep your stop losses in place and emotions out. Finally thank me for your profits but do not blame me for your losses because you are the one who pulled the trigger!!!

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Who is Mr.Incredible?

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Mr.Incredible is a Momentum/Technical Breakout player who trades small/micro cap plays and who saw a 600% Growth since 2006, Yes even in this down market. I am going to post my real trades (including profits/losses) soon...As a general caution and advice Please start with a small position and always keep your stop losses in place just in case....As usual Do your DD before investing. Thank me for your profits and don't blame me for your losses because you are the one who pulled the trigger!!!