Jul 23, 2010 10:31 AM PDT
Trends, Charts and Exclusive Opinion
Two China ‘Stars’ and a Medical Device Comeback Story Inbetween
FSIN: China Copper Company has a Real Niche
DXCM: Makes a Comeback from hard 2008
CRIC: Investors Getting in on China Real Estate
Up first this morning is Fushi Copperweld Inc., (FSIN) http://www.fushicopperweld.com/ currently trading in the $12.38 range on a 3-Month average daily trading volume of 316,193 shares. FSIN was trading in the $5 range a year ago and staged a summer rally into the $9 range. FSIN then dropped to the $7 range, but picked right up again and held $9 for 10-weeks. It drooped again to $7 in Nov, but then staged a comeback and has worked its way to its current level, headed for $13, ever since. FSIN had a 52-week high of $12.36 set on 03-10-10. FSIN has trailing twelve month revenues of $172+ million and a positive, corresponding diluted EPS of +$0.65.
There are a few shorters of this stock, and it is currently at its high, but even at this price, FSIN is a long-term (1 Yr) ‘Buy’ consideration for me. The reason: Copper in China. FSIN makes and sells wire used in a variety of telecommunication, utility, transportation and other electrical applications. FSIN had a Q4 09 net increase of 121% vs. Q4 08 resulting in a Q4 09 $0.34 EPS. FSIN also had a yearly q-o-q 34% increase in gross profits and a decrease in operating expenses. Nice.
FSIN 1-Year
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Next up this morning is DexCom Inc., (DXCM) http://www.dexcom.com/ currently trading in the $9.61 range on a 3-Month average daily trading volume of 354,597 shares. DXCM was trading in the $4.50 range a year ago and in mid-May staged a rally taking it into the $8 range by mid-Sept. It held that ground until late-Oct when it slid back to $7, which it held through Dec. In Jan 2010, DXCM took off and surged back to its current range. DXCM has a 52- week high of $10.32 set on 03-11-10. DXCM is one of those year-over-year comeback stories that gives one hope. I’m tossing my hat into the ring, even with more shorters than I like and even though it’s near its high because I believe DXCM will continue improving. DXCM is a short-term (6 Mo) ‘Buy’ consideration for me.
DXCM makes and sells continuous glucose monitoring systems for ambulatory use by people with diabetes, and for use by healthcare providers in the hospital for the treatment of both diabetic and non-diabetic patients. For the full-year ended December 31, 2009, product revenue grew to $18.0 million, an increase of 122% from the $8.1 million in product revenue reported for 2008, and total revenue grew to $29.7 million, an increase of 202% from 2008. Total fourth quarter 2009 revenue, which included development grant and other revenue, was $10.5 million, an increase of 157% from the comparable period in 2008. DXCM reported a net loss of $53.5 million, or -$1.21 per share, for the twelve months ended December 31, 2009. DXCM will do better for shareholders in 2010.
Finally this morning is China Real Estate Information Corporation (CRIC) http://www.cric.com/ currently trading in the $10.07 range on a 3-Montha average daily trading volume of 326,764 shares. CRIC started trading on the NASDAQ in mid-Oct in the $16 range. Like most newcomer IPOs, the stock fell back; to the $12 range, had a spike to the $14 level, and then slipped back to $12 in mid-Dec. CRIC has been hovering between $8 and $10 the last 6-weeks. CRIC has a 52-week high of $17.15 set on 10-20-09. CRIC has trailing twelve month revenues of $67+ million and a corresponding, positive diluted EPS of $0.40.
At the time of the IPO, the headline was, “U.S. investors to get a piece of China's booming real estate market.” That still holds true today, so CRIC is a short-term ‘Buy’ consideration for me at this price. As of June 30, 2009, its CRIC system contained detailed data on approximately 38,200 developments or buildings and approximately 24,200 parcels of land for development in 56 cities throughout China. CRIC returned shareholders a +24 cent EPS in its last quarter.
CRIC 6-Month
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