I purchased a large stake in HRBN at $13.20. Harbin is now my largest holding, and I believe it has the potential to be a big performer over the near to medium term. HRBN posted a monster quarter last quarter, and the stock nearly doubled in just about two months. However, since hitting a high of $15, the stock pulled back below the 50 day MA. After two attempts to retake the 50 day MA on heavier volume last week fell short, HRBN has finally managed to retake its 50 day MA in the heaviest trading volume the stock has seen since February. The breakout coincides with news that Harbin was booked to supply electric motors for a major North American auto parts supplier, and I believe the stock is beginning to pick up some momentum. I will get to the fundamentals in an article coming very soon, but with a net cash position of $40 million and a trailing P/E of 13, this stock has room to run from a valuation standpoint.
HRBN 1-yr chart
As per GlobalSCAPE, I’ve been tracking this company for some time, and listened to their conference call last night. This is a business which has put up solid numbers for some time, and their recent contract with the Army provides the base for a potentially growing relationship with the DoD. The stock has been selling off post earnings (despite the fact that earnings were in my view pretty solid), and yesterday the stock was really getting hammered for no reason. With the stock down 10%, I’ve entered a position at $2.25. Yesterday’s action gave me a gift on the price side, and this was an opportunity I could not pass up. I will be writing in more detail about GSCP shortly. In the meantime, keep in mind that this is a very thinly traded stock.
GSCP 1-yr chart