Stock’s Success a Sign of Improving Sentiment
Thursday, September 27th, 2007
By Mitchell Clark, B.Comm. for Profit Confidential
In a clear sign that the health of the stock market is improving, highly speculative stocks are coming back in price big-time. U.S.- listed Chinese stocks in particular are doing very well once again and many speculative stocks are hitting new all-time highs right now.
In June, I wrote about some portfolio management issues and how important it is in a speculative portfolio to have a mix of companies of different sizes operating in a variety of industry groups. One company I wrote about was Advanced Battery Technologies, Inc. (OTCBB/ABAT), as an attractive penny stock in which to speculate.
This small company manufactures and distributes rechargeable polymer-lithium-ion (PLI) batteries for electric automobiles, motorcycles, mine-use lamps, notebook computers, walkie-talkies and other electronic devices. The company has a New York office, but maintains its executive offices and manufacturing facilities in China.
Recently, the company announced that its revenues for the second quarter of 2007 grew an impressive 140% to $7.7 million, up from revenues of $3.2 million generated in the comparable second quarter of 2006.
Net income for the second quarter increased 490% to $3.3 million, or $0.066 per fully diluted share, as compared with net income of $571,665, or $0.013 per fully diluted share, generated in the same period in 2006.
Revenues for the six months ended June 30, 2007, increased 157% to more than thirteen million dollars, up from revenues of $5.1 million.
Net income for the first six months of 2007 grew to $4.6 million, as compared with modest net income of $840,198. The company finished the first half of the year with an order backlog of a record thirty-three million dollars.
I love finding small companies, like Advanced Battery Technologies, that are nimble, fast-growing, and making money. When I first mentioned this company in this column in June, the stock was trading around $2.50 per share. Now, the stock is almost at $5.00 per share, having recently closed at $4.80 per share.
In my mind, the recent success of Advanced Battery Technologies while the stock market was in turmoil is a signal that investor sentiment is improving. This small company is going to keep on making money for stockholders, and my own stock market sentiment is improving because of it.
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Tags: chinese stocks, stock market
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Mitchell is a Senior Editor at Lombardi Financial specializing in small-cap stocks. He’s the editor of a variety of popular Lombardi Financial newsletters, such as Penny Stock Reporter, Micro-Cap Stocks, and Monster Profits. Mitchell, who has been with Lombardi Financial for thirteen years, won the Jack Madden Prize in economic history and is a long-time student of equity markets. Prior to joining Lombardi, Mitchell was as a stock broker for a large investment bank. While Mitchell is not working he enjoys fly fishing, motorcycling and tending to his hobby farm.



