Yesterday, China TransInfo Technology Corp. (NASDAQ:CTFO) stock exploded 25.48%.
The explosion was induced by speculative interests, or by buyers keeping long positions, convinced that this is the last chance to buy CTFO at lower prices.
These days, there were no significant news about the company. Only different stock marketing letters were proudly disseminating that the China stock is a gainer.
The last one was at the end of June as CTFO announced the contract for a short-term loan of its variable interest entity Beijing PKU. The loan amount is approximately $4,4 M and will be used as working capital.
The company’s financial are admirable with their three-digit increases from the same period of the year before. The following are some financial highlights for the first quarter of 2010:
- Net sales – an increase of 282.10%
- Net Income – an increase of 21.42%
- Operating Profit – an increase of 151.63%
- Though, gross margin was 34.29% for the first quarter of 2010, as compared to 51.01% for the same period in 2009. [BANNER]
CTFO expects further to grow fast, along with the growing governmental spending in the transportation sector.
Despite above mentioned facts, it seems that yesterday the share of those supporting Warren Buffett’s theory for buying underestimated companies was not so big. During the session, the shorted volume was 46.27% of the total volume traded.
As pretty often happens, yesterday CTFO stock shot up again and today may ruin down wildfire.
