By: Scott Redler
China Armco Metals, Inc., CNAM, through its subsidiaries, imports, sells, and distributes various metal ore and non-ferrous metals to the metal refinery industry in China. The stock has been hit hard over the past 6 months. This past Monday they did a presentation for analysts. This could be a combination value play and technical play to put in your portfolio for next two quarters.
Company should do 200-225 this year and earn .80-.83 cents, and has a PE of 3.9 with a market Cap of 45 million. In time, it can have a big run. I bought some, and to me as a technical trader. I think a move above $3.30-3.40 will ignite this stock for a move back to $4 quickly, then perhaps $6 or so. Nice risk/reward in this lower range.
When these stocks go, they are hard to grab so you have to be involved with some before. Buy $3.30-$3.40. Stop would be 2.75. First target $4.20. Second target $6.
