Shiner International, Inc. (BEST), through its subsidiaries, engages in the research and development, manufacture, marketing, sale, and distribution of packaging film and color printing for the packaging industry.

BEST has been making some big moves in price action as well as in the business world. Recently BEST signed a significant deal with the largest meat product manufacture in China with potential of contributing nearly $586k in monthly sales for the company.

China Ritar Power Corp., through its subsidiaries, designs, develops, manufactures, and sells lead-acid batteries under the Ritar brand in China and internationally.

Its nice too actually see some forward growth estimates after a long period of companies' futures at the brink of failure; it was difficult to find any positives or value in small cap companies other than through technical analysis which is my expertise at ttt.net.

The market continues its bull ran as the DOW ran to new recent highs Monday to close at 10,090. As the market continues to rally more and more bullish stock chart setups are popping up on my scanners. Here are 3 stocks that haven't yet broken out from their chart patterns but all have great potential if these trigger prices are hit to spark the breakout momentum.

Small Cap Stock Pick GSI:

Oil and gas stocks have been hitting my stock screens the past week or two as oil has been on the rise and light crude is setting up a very bullish looking chart pattern with some big upside potential.

Checking out USO’s chart, which is the ETF of the US OIL FUND traded on the NYSE is practically a mirror image of the Light crude futures commodity, we’ve got a very bullish ascending triangle pattern setting up here with lots of upside potential. I think we could expect USO to hit up the $60 range over the next several months based off of this chart pattern.

I’ve been watching in bewilderment at how much airline stocks such as UAUA, AMR, DAL, LCC, and RJET have have rallied without any real profit taking to set in yet. I shorted RJET a few times mostly for profits as I’m looking to catch this on the down side once people start taking there profits. And it's not a matter of if this will happen, it's when. With every huge sector rally, there's always a point when it peaks and retraces a significant amount before it continues going up, levels, or continues to fall.

OPEC scheduled an emergency meeting for Friday, October 24th, and is expected to cut crude oil output by an unknown amount. Demand for oil has been on the decline which has led to oil dropping around 55% from its peak near 150. Falling oil prices has meant increased profits for airlines, which is why the airline sector has been skyrocketing. Yet with rumors of the OPEC cut, hugely overbought conditions, and airline stocks losing momentum, this seems like it could be the beginning of a good time to catch airline stocks on a downside move, at least in the short term.

The best way to find to make loads of money in the market is to find the hidden treasures before the mob has found them, the stocks that you can get into before they are in the public eye and blow up before you can get into it at a fair price. One way to find these kind of stocks are to scope out the OTCBB stocks before they are traded on the major exchanges, such as stocks like China Direct (CDS), which I found while it was trading as a bulletin board stock and purchased in the $3 area and noticed its value and growth as a hidden treasure stock.

Here's my original article on CDS and CHND.OB, here at Seeking Alpha back in May 07. I eventually sold this stock for a 150% gain after it was trading as a stock on the Nasdaq exchange. Another example is Advanced Battery Technologies (ABAT) which also used to trade on the BB exchange and I managed to pull 35% out of when it was trading in the $1 area. It is now listed on the Nasdaq as well and went as high as $9/share.

Small Cap Stock Pick #1: Aladdin Knowledge Systems (ALDN)

ALDN broke out from the horizontal resistance mark around $10/share Monday on heavy volume in the face of a collapsing market. This breakout suggests a possible move to fill the gap in the low 13 area which implies a possible 30%+ potential gain here. Looking at ALDN's numbers, the company expects some very strong earnings growth, nearly 75%, in 2009, which is quite significant as we don't see these kind of estimates very often in this weak economy. Analysts are expecting $0.68EPS in 2009, which gives ALDN a future fair value among its industry peers of $16.10/share compared to its closing price of $10.17 on Monday. I'm long at $10.06.

It's been a while since I found one of these great Chinese stocks that were so easy to find months ago (back then, it was like trying to find a piece of hay - in a pile of hay). Since Xinyuan’s (XIN) IPO in December, the trend has been in bear mode as the market has faced credit and housing issues all year long lead by the U.S., which hasn’t been in favor of upside movement for stocks. I’m not one to call a bottom in the housing sector by any means, but there are always short squeezes and short term opportunities to capitalize on in depressed stocks on the long side.

Fundamentally, XIN is deeply undervalued within the residential construction industry, carrying an extremely low forward price/earnings ratio of just 4.38x, compared to the industry average of 26.67x. For the recent fourth quarter, XIN posted strong results with income up 81%, excluding a one time charge, and revenue more than doubling to $91m.

First stock we're gonna take a look at is Emergent Biosolution (NYSE: EBS). Fundamentally EBS looks strong as it carries a low forward P/E ratio of just 8x earnings on estimates of 1.06 eps in the year following. Currently the Biotech industry is trading at a much higher mutlitple of 26.06x making EBS look fairly cheap among its peers of biotechs. We could suggest a fair value for EBS of 27.60/share found by multiplying the forward earnings of 1.06 by the 26x industry average earnings multiple. This gives us plenty of room to capitalize on a trade with todays closing price of just 8.53:

Technical Analysis: After breaking out from its bearish descending channel EBS has made a strong run topping it off with todays strong rally on increased volume. Price is down AH and I expect some profits to be taken warranted its overbought. I want to pick up some share of EBS near $8 +/- $.20

China Agritech (CAGC.OB) is engaged in the development, manufacturing and distribution of organic liquid compound fertilizers and related products in the People's Republic of China. The company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The company sells its products to farmers located in twelve provinces of China including: Heilongjiang, Hebei, Liaonong, Jilin, Shandong, Inner Mongolia, Henan, Sichuan, Guangdong, Xinjiang, Yunnan and Guizhou. For more information visit their website.

Yet again we find ourselves in a position for speculation in China. Fertilizer stocks rallied across the board yesterday with Canada's Potash (POT) leading the industry hitting record highs Thursday to close at $114.58 after reporting a 67% rise in earnings as demand for fertilizer is rising in developing countries. "Fertilizer producers continue to post impressive results, as agricultural conditions globally are very strong," Goldman Sachs analyst Edlain Rodriguez wrote in a client note.

Based in Xi'an, the capital city of the Shaanxi province in China, China Housing & Land Development, Inc. (CHLN.OB) is the largest Private developer of residential and commercial properties. China Housing has been an independent business since 1992 and became a U.S. public listed Company in 2006. The housing market has been growing quite rapidly in China over the past few years as China as a whole has been expanding greatly. CHLN has been around for a while and is also expanding its revenues and income very rapidly and are expected to continue into 2010 with huge future projects that will provide steady growth in earnings.

History: Information from Roth Capital presentation:

Fundamental Analysis:

GSCP has experienced a large amount of growth from 2004 - 2006, with an 800% increase in net income over the course of those two years, which explains why its share price has increased from a slim .15 cents/share in early 2005 to yesterday's close of 4.19, equating to a staggering 2700% gain. Currently, GSCP is trading at a 37.08x earnings multiple, compared to the software programming industry average of 27.5x, making its current valuation extended. Though given a low forward P/E of just 12.32x, less than 1/2 the industry average, investors and traders aren’t hesitant to continue to drive price action in favor of the bulls.

HOKU seems to be placing a large foot in the door as a supplier of polysilicon products to large solar companies. As we all know, sustainable energy is the wave of the future, so stocks like this could be the next big thing someday. HOKU is expecting to report -.37 eps this year, with a huge expected jump to 1.06 the year following. HOKU has a fairly low forward PE of 9.06x, compared to the industry average of 22x. Let's keep this one on close watch as this money train might not be over.

I’m quite certain I've posted CHNG.OB in bull mode several times, though for some odd reason I never went further than looking at the chart and saying to myself , “hmm, interesting. I’ll add it to bull mode”. I’m regretting it now, as this stock looks very attractive and good money could have already been made.

Fundamental Analysis:

The Company converts limestone into NPCC using its proprietary technology. The unique chemical and physical attributes make NPCC a valuable ingredient in tires, paints, polyvinyl chloride ("PVC") building materials and other products. NPCC enhances the durability of many products by increased strength, heat resistance, and dimension stabilization.

The Company is also engaged in the manufacture and sale of coal-based chemical products namely ammonium bicarbonate, liquid ammonia, melamine and methanol. The Company markets and sells its coal-based products mainly for chemical fertilizers and raw materials in the production of organic and inorganic chemical products, including formaldehyde and pesticides.

China Direct, Inc. (CHND.OB) maintains active, majority stakes in a diversified portfolio of Chinese companies, in addition to offering consulting services for both private and publicly traded Chinese entities. According to the company's website:

China Direct provides a platform to develop and nurture these entities as they expand their businesses globally. As your direct link to China, our Company serves as a vehicle to allow investors to directly participate in the rapid growth of Chinese economy in a diversified and balanced way.

2006 Highlights from PR on Tuesday April 17th:

Fourth Quarter 2006 Highlights

The mission of NUCON-RF is to provide cutting edge environmental safety solutions for the nuclear waste management and power quality challenges facing the Russian, European and Asian markets.

Primarily it looks like they mine zinc though produce silver, copper, and gold as well throughout the year. All the resources I used placed them under the gold and silver industry, though I compared them to the metal mining industry as well.

BWLRF growth in eps in 2006 has been quite amazing. In the years 04 and 05 BWLRF managed to squeeze out some profitability reporting .01 and .04 for 04' and 05'. In Feb they reported their full year 2006 results with .37eps which was a 825% increase in income from 2005 to 2006. BWLRF is managing to sustain this sudden rise income and are expected to grow to an annual .50 eps for 2007 and .60 eps for 2008 with increased heavily revenues. It appears that things are leveling off into 2008 estimates, but I think BWLRF looks way undervalued here, especially when we compare it to the industry averages and to a similar company, Rio Narcea Gold Mines (RNO).

OPBL's annual eps growth rate is currently at 392%, compared to the industry average of 81% (and its qtr vs year ago qtr rate of 862% compared to the industry's 110%) which gives OPBL the right to trade at a higher multiple than that of its competitors. With future growth and the release of its next couple earnings reports, OPBL’s high multiples will catch up with its valuation. OPBL also has a very attractive gross margin of 52% compared to the industry's 22%.