China Growth Stocks

[pmony5]

TSTC article in Small Cap Network... Next up this morning we have Telestone Technologies Corporation (TSTC) http://www.telestone.com/ currently trading in the $11.15 range on a 3-Month average daily trading volume of 243,752 shares. TSTC has a 52-week high of $24.94 set on 01-06-10 with current trailing twelve month revenues of $79+ million and a positive ttm diluted EPS of +$0.96. I really like those earnings. TSTC is a global company with 30 sales offices throughout China. For more than 10 years, TSTC has been installing radio-frequency based 1G and 2G systems throughout China for China's leading telecom companies. TSTC developed and commercialized its third generation 3G technology for the local access networks and WFDS (Wireless Fiber-Optics Distribution System) for China's three cellular protocols. In Aug TSTC had a backlog of $106 million and expected to bill out their backlog before December 31, 2010. For the year, TSTC has guidance of $22.9 million in net income, which will equate to $2.17 in EPS per 10.5 million fully-diluted shares the company expects to report on December 31, 2010. There are a lot of shorters of this stock, nearly 20% of the float, putting downward pressure on the value. At far less than half its high however TSTC would also be a ‘Buy on the Dips’ consideration for me. With those earnings, its new foray into 3G and 4G networks and its embedded place in China’s telecom sector, The short-sellers will start bailing out of their hedges when they can either make a small profit or take a small loss.

http://www.smallcapnetwork.com/Getting-Lean-Mean-and-Refocused-SPAR-TSTC-JMBA/s/article/view/p/mid/1/id/874/