Signs Point to Breakout Move for Highpower International

Sometimes there are fundamental reasons for a company’s stock price to rise – usually tied to expanding sales and a growing bottom line profit. Other times a stock will jump primarily based on its technical trading profile. In the case of the issue I want to bring to your attention today, the under-the-radar small cap play Highpower International (HPJ), the company’s business and stock performance are both pointing to potential breakout highs ahead. Highpower International, Inc. is engaged in the production and sales of rechargeable nickel-metal hydride (Ni-MH) batteries, lithium batteries and battery systems. The company also recycles scrap battery materials through outsourcing and resells the recycled materials to some of its customers. The company’s batteries fall into two main categories—consumer and industrial. The consumer batteries category produces Ni-MH and lithium batteries, while the industrial batteries are designed for electric bikes, power tools and electric toys. First, let’s look at how this company has been performing at a nuts and bolts level. Over the past four quarters HPJ has recorded revenues north of $30 million three times, with the other quarter showing almost $25 million in sales. For the three $30-million plus quarters the company was mildly profitable, and posted…

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Update – Taking Stock Before The Holidays

It’s been an amazing, record-shattering ride for U.S. equity markets in 2013. With Thanksgiving right around the corner, and Christmas less than one month later, it’s a good time to look back at several of our picks, evaluate how they did, and weigh in on how these plays may perform during the rest of the year and beyond. Sharps Compliance (SMED) Sharps Compliance Corp. (SMED), which I brought to your attention in late October, is in the business of collecting and disposing of medical waste, and a range of other dangerous potential contaminants.  Based on the company’s latest earnings report, indicating that business was booming, along with several other factors, I felt that there was some solid potential for an imminent short-term breakout in SMED’s share price. At the time, SMED was trading at about $3.80 per share. In fact, that’s exactly what happened, with SMED shares running up to a new 52-week top of $5.24 per share at the beginning of this week. Profit taking finally kicked in earnest Wednesday, despite the continuing bull market run. As a result, it appears that it’s time to close out this position, which yielded optimal gains of about 40%. Congratulations if you…

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