If you want to be an active speculator in a lackluster stock market, then you need to be considering the strongest stocks the market has to offer. Get a list of those stocks with high relative strength and you’ll have some of the best speculative opportunities for the near term.
I always like to look for stocks that are doing great in a down market. It tells you that, in spite of all the negative sentiment in the broader market, the story must be so outstanding as to warrant your attention.
One company that I think fits this bill is Fushi Copperweld, Inc. (NASDAQ/FSIN). While the stock market was going down, this micro-cap company was hitting new all-time highs.
Fushi Copperweld operates through its wholly owned subsidiary, Fushi International (Dalian), and manufactures bimetallic composite wire products. The company’s core product is copper- clad aluminum wires, which combine the conductivity and corrosion resistance of copper with the light weight of aluminum.
According to the company, its copper-clad aluminum wires are a cost-effective substitute for single copper wire, and can be used in a variety of applications such as coaxial cable for cable television (CATV), signal transmission lines for telecommunication networks, distribution lines for electricity, electrical transformers, and wire components for electronic instruments and devices.
Fushi is based in China, but recently acquired Copperweld Bimetallics, LLC of Fayetteville, Tennessee as a way to enter the U.S. market.
This stock is several points below its recent 52-week high of $27.69 per share, but its strength in the face of such negative market sentiment leads me to have a really positive outlook for the company.
Even at its current stock price, this company is reasonably priced on the stock market. Right now, Wall Street expects Fushi’s 2008 earnings to grow some 50% over 2007. Sales are expected to more than double.
Even if you don’t want to be a buyer in this market, put Fushi Copperweld on your radar screen and watch what happens. I have high hopes for this company over the next two years.