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JimVanMeerten (63.02)

Hong Kong power play -- HPJ

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December 09, 2009 – Comments (0)

I had some room in my Marketocracy VMSLO model portfolio so I went on BarChart and started hunting for stocks trading below 100K shares a day that continue to hit new highs in this down day market. I came upon Hong Kong Highpower -- HPJ. The stock has hit 12 new highs in the last 20 sessions and is 5 for 5 recently. There has been a whopping 308.48% price appreciation in the last 65 days. BarChart's technical indicators have a 12 out of 13 buy signal for a 96% overall buy rating

HPJ develops, manufacturers and markets rechargeable Nickel Metal Hydride and Lithium-ion batteries and related products for use in a variety of electronic devices. The majority of Hong Kong Highpower's products are distributed worldwide to markets in the United States, Europe, China, Hong Kong, Southeast Asia and Taiwan. The way all these new electronic devices everyone wants eats batteries this company has the right products line.

There is only one Wall Street analyst, Rodman & Renshaw following this stock and they just initiated coverage in August. They predict great things with a 25.7% estimate on sales increase, 146.7% profit improvement for this year and a 13.5% EPS growth next year.

On other sites coverage is also thin with Wall Street Survivor giving the stock a 5/5 Survivor Sentiment rating and a 5/5 fundamental rating. Motley Fool CAPS has not begin covering this stock.

Recommendation: I'm adding Hong Kong Highpower -- HPJ to my speculative VMSLO model portfolio. It's trading around 6.70 and a protective stop loss of not less than 5 should be in place. Remember -- this is a speculative buy. There isn't a lot of following for this stock and it is thinly traded.

Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email FinancialTides@gmail.com

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