Put Highway Holdings (NASDAQ:HIHO) on your watch list. The stock was up 9.14% today to $4.06, and looks to me like it will retest recent highs above $5.
I'm not sure what caused today's spike. Certainly its not the glamorous story behind this company, which manufactures LED lights and radio chimes in China.
Perhaps today's move is a delayed reaction to last month's acquisition of Golden Bright Plastic Manufacturing Company Limited. HiHo negotiated what appears to be a fantastic deal, acquiring Golden Bright and related operations for $514,000 now and up to $1 million in future payments. The acquisition will be immediately accretive, as Golden Bright and the related operations earned about $278,000 in net profits and generated about $536,000 in EBITDA last year on $6.5M in revenues. It's hard to go wrong picking up companies that cheaply; just ask Warren Buffett.
DISCLOSURE: I am long HIHO. Not a recommendation to buy or sell any security. For informational and educational purposes only.