Another fairly uneventful day for CNIT, with volume just over 100k. It's continuing to look like $2.30-$2.31 is a pretty good day trading support, with $2.36-$2.37 as a resistance for a quick 2-3% gain. After hours there was a very small buy at $2.40, helping the stock get a little gain AH, but not significant given the extremely small number of shares traded.
Instead of talking about CNIT, therefore, I'll mention a few other names that are getting some good action and that you should take a look at if you're interested in Chinese small caps with great fundamentals and lots of upward potential.
ZST Digital Networks, INC. (NASDAQ:ZSTN) supplies digital and optical network equipment to system operators. They currently have a P/E that hovers around 1.44 as it has plummeted from its 52 week high of $8.48. Since early June, the stock was trading between $2.30 and $2.75, and in the last week it has recouped to trade between $3.10 and $3.30 in the last two days, with exceptional volume yesterday (7x the average trading volume). With great fundamentals (including excellent EPS growth and no debt), ZSTN might be back in an upward trend. Rodman & Renshaw last rated ZSTN "Outperform" on 5/5/11 with a target set at $14.
SinoHub, Inc. (AMEX:SIHI) sells custom design, private-label mobile phones through distributors and operators in developing countries. Their partners include Samsung on the manufacturing side and China Mobile on the operator side. Note that China Mobile is the largest mobile operator in the world by number of subscribers, and that China represents the largest number of mobile device buyers as well as the largest growth for new buyers in the entire world. SIHI has a P/E currently around 2.01, great EPS growth (78%), and their auditor is Baker Tilly (so less to worry about for those of you who still don't trust small Chinese companies). Today SIHI surged 11.20% and in the past week rose more than double that, coming up from $1.15 to $1.39. Volume today was huge compared to the average (6x), and there was even AH interest that drove the stock up to $1.50. SIHI has retraced from a 52 week high of $3.30, and Rodman & Renshaw have given it a $5.50 price target on an "Outperform" rating on 5/17/11. With the recent surge SIHI looks like a great chart that could easily see $2 in the next few weeks.
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