Enthusiasm Over China Propels CAEI and JADE and Tech Stocks HSTM and KNOL Sustain Rally.
China stocks China Architectural Engineering (NASDAQ:CAEI) and LJ International (NASDAQ:JADE) led a broad-based enthusiasm about Chinese stocks this morning and Healthstream (NASDAQ:HSTM) and Knology (NASDAQ:KNOL) kept the Tech Sector rally alive in early trading.
Gaining 21.57% ($0.44) in early trading, China Architectural Engineering (CAEI) http://www.caebuilding.com/ set a new market cap of $132 million and is currently trading in the $2.50 range on the Nasdaq. CAEI has a 3-Month average daily trading volume of 1,432,040 shares and it nearly doubled that by 11 a.m. EST topping 2,510,310 shares traded.
CAEI had no official news today, but analysts, pundits and observers were filling up sites, blogs and message boards all morning with positive outlooks and forecasts on China and any U.S. publicly traded Chinese stocks. CAEI was a favorite. CAEI is heavily owned by insiders and I wouldn't be surprised if they were aggregating shares at this price.
CAEI builds and installs wall systems, roofing systems, steel construction systems, eco-energy saving building conservation systems, and related products for public works and commercial real estate projects.
At $2.50 CAEI is off its 52-week high of $9.97 set on 08-11-08 and is four times higher than its 52-week low of $0.60 set on 03-10-09 (a good buy signal). At $2.50, CAEI is above both its 50-day and 200-day moving averages. CAEI has trailing twelve month revenues of $162 million. Its shares out versus float ratio is a little lopsided and I would like to see more shares in the public float.
Another China-based company with no official news released today that is really benefiting from all the coverage is LJ International (JADE) http://www.ljintl.com/ which picked up 13.13% ($0.34) in early trading. JADE set a new market cap of $67 million and is currently trading in the $2.93 range. JADE has a 3-Month average daily trading volume of 301,995 shares and easily doubled that today surpassing 851,500 shares traded by 11 a.m. EST.
Like CAEI, JADE has a lot of inside owners, though not nearly as many as CAEI, and the buying enthusiasm here could be: 1) aggregating public shares at this price and 2) its Q1 09 financials released on May 15. For the quarter ended March 31, 2009, JADE retail revenues increased 40%, surpassing wholesale revenues for first time and its cash position rose to over $0.64 cents per share.
JADE makes and sells jewelry at 94 ENZO retail stores across Hong Kong, the People's Republic of China, and Macau.
At $2.93, JADE will set a new 52-week high today. Its previous 52-week high was $2.63 set on 08-03-09. At $2.93, JADE is well above its 52-week low of $0.35 set on 10-28-08. JADE is ahead of both its 50-day and 200-day moving averages. It has trailing twelve month revenues of $128 million and a trailing twelve month diluted EPS of $0.07. It shares out versus float ratio is near-parity.
Gaining 11.11% ($0.41) in early trading today is tech-based Healthstream Inc., (HSTM) http://www.healthstream.com/ which has new market cap of $88 million. HSTM is currently trading in the $4.15 range on the Nasdaq. HSTM doesn't generally trade with great volume (its 3-Month average daily trading volume is 20,692 shares), but today is an exception: 177,096 shares traded as of 11 a.m. EST.
HSTM volume and price jumped on news from late yesterday that its Q2 09 earnings came in at $1.7 million, or 8 cents per diluted share, in the quarter compared to $739,000, or 3 cents per diluted share, in the same quarter the previous year. In the quarter that ended June 30, revenue for HSTM came in at $14.6 million, up 12 percent compared the same quarter a year ago.
And taking advantage of yesterday's momentum, HSTM management raised its revenue guidance for all of 2009 today. HSTM now projects overall revenue will grow by 10 percent to 12 percent in 2009, and that earnings per share for 2009 will range between 16 cents and 19 cents per share.
HSTM provides Internet-based learning and research solutions for the training, information, and education needs of the healthcare industry in the United States.
At $4.15, HTSM will set a new 52-week high today. Its previous 52-week high was $4 set on 07-30-09. Its 52-week low was $1.58 set on 02-24-09. At $4.15 HSTM is above both its 50-day and 200-day moving averages. HSTM has trailing twelve month revenues of $55 million and a trailing twelve month diluted EPS of $0.21. I would like to see more shares in the public float, but it isn't a red flag.
In a different industry, but also part of the tech sector, Knology Inc., (KNOL) http://www.knology.com/ gained 8.31% ($0.72) early today on the announcement of its Q2 09 numbers. KNOL has a new market cap of $333 million and is currently trading in the $9.31 range on the Nasdaq. KNOL has a 3-Month average daily trading volume of 159,758 shares and was on its way to topping that at 11 a.m. EST.
KNOL reported today that total revenue for the second quarter of 2009 was $107.9 million compared to revenue of $104.7 million for the previous quarter and $102.1 million for the same period one year ago. KNOL reported net income for the second quarter of 2009 of $1.3 million, or $0.04 per share, compared with a net loss of $2.3 million, or $(0.06) per share for the previous quarter and a net loss of $4.0 million, or $(0.11) per share for the second quarter of 2008. Not bad.
KNOL owns and operates an interactive broadband network in the southeastern and midwestern United States. It provides video, voice, data, and communications services, including analog and digital cable television, local and long-distance telephone, high-speed Internet access, and broadband carrier services to residential and business customers. Its Q2 09 numbers showed an increase in customers.
At $9.31, KNOL is below its 52-week high of $11.24 set on 08-14-09 and is far above its 52-week low of $3.70 set on 10-28-08. At $9.31, KNOL is ahead of both its 50-day and 200-day moving averages. KNOL has trailing twelve month revenues of $413 million and its shares out versus float ratio is close enough to parity to not cause any stability questions.