NEWN picked by Rev Shark... A Stealth Tech Play
By Rev Shark
RealMoney.com Contributor
11/8/2010 12:10 PM EST
Click here for more stories by Rev Shark
Try Jim Cramer's Action Alerts PLUS
CLICK HERE NOW
One of my favorite China plays right now is a company called New Energy Systems Group (NEWN - commentary - Trade Now). The company has done well providing lithium ion batteries and other mobile power sources for the booming demand in China. The company is launching its products in the U.S. this year. However, what is particularly interesting is that the company is a stealth play on Apple (AAPL - commentary - Trade Now).
New Energy Systems' wholly owned subsidiary Shenzhen E'Jenie Technology Development was recently licensed to manufacture backup power systems and accessories for Apple's mobile digital devices. The company has devices that power iPods, iPhones and iPads and has been certified by the developer to meet Apple's performance standards.
The Apple connection was just announced on Sept. 7 so it may not have any immediate effect on the financials, but on Sept. 23 the company reaffirmed guidance of $1.23 per share for 2010. The company stated, "We continue to generate very strong organic growth within all four of our businesses, including Anytone, NewPower, our battery distribution business, and our battery shells and caps segment. In particular, our Anytone business is rapidly gaining market share within China due to strong demand for our back-up battery chargers. As a result, we are extremely confident in achieving or exceeding our previously issued guidance for 2010, and anticipate very strong top and bottom-line growth in 2011."
The company has a trailing P/E of just 6, although earnings growth in 2010 will be around 50%. It is thinly traded with a market cap of under $100 million.
I have recently put shares in the Sharkfolio and will be actively trading it prior to its next earnings report which is due out in about a week.
At the time of publication, DePorre was long NEWN, but positions will change at any time.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider NEWN to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
P.S. "My best investment this past year was the one I made in Action Alerts PLUS" - M. Opremcak, Subscriber
See which stocks Jim Cramer is buying for his Action Alerts PLUS portfolio. Get Free Access Today!
JIM CRAMER: KASS'S CALLS "RIGHT AS RAIN"
Jim Cramer says, "I start my day reading Doug Kass because he's been right as rain." To benefit from Doug Kass's forecasts, get RealMoney Silver, the only place where you'll find his exclusive Trading Diary. Try it FREE today.
A 571.2% return. That's what you'd have in your portfolio if you'd been following Stocks Under $10. So what is this incredible stock? And more importantly – what's the next under-$10 stock ready to skyrocket? Find out now when you join David Peltier at Stocks Under $10.
Get over 40 options trade ideas every week! Introducing TheStreet's OptionsProfits, our brand new Options service. Get trade ideas & exclusive commentary from 10+ experts all in one place. Try Options
