In order of my favorites:
What, a Chinese stock making new highs? Meet $300 million Yucheng Technologies (YTEC), which provides computer support to the Chinese banking industry, and reminds me very much of Vasco Data (VDSI), a similar kind of banking technology play that took only 7 months to triple from $15 to $45 (back when it was breaking out). Granted, until YTEC closes above $18, it’s just a double top and considering the failure to hold/extend past that key level (October/all-time highs), this is not a confirmed breakout…yet…and that’s why I have no position. But revenues, profits and margins are all growing nicely—think 30-50%—and with its solid earnings on 2/4, the forward PE is only around 18, aka plenty of room for expansion. Not that I trust any Chinese company, so let’s just go back to their badass chart. Lots of Chinese companies—BIDU, CHNR, JRJC, GBT, CHNG, CTRP and EFUT—surged back in October, but only YTEC is even close to its highs, let alone threatening to breakout. And because I like to only buy breakouts that makes YTEC my favorite out of all the China plays out there.

Then there’s the slower growing $260 million medical play that deals with nasty varicose veins, VNUS Medical Technologies (VNUS). It’s more expensive a stock—forward PE of 30+—but margins are also in the 65% range and after boring shareholders to death for the past eight months, hovering between $13 and $16, on Friday it finally broke out after strong earnings.
As much as I like this definitive chart breakout, this company freaks me out because of their product. Can you imagine many fund managers saying “Wow, people are really going to want to deal with their varicose veins, this is one hot company.” OK, it’s possible—in fact, this is one of those weird niche products that might be rewarded with some ridiculous multiple, but it’s simply not my comfort zone. It’s now triple off its lows, so it’s come pretty far pretty fast, if it’s meant to go a lot higher, it should have no problem taking out its all-time high at $20ish—only then will I consider buying.

And last, but certainly least, there’s $680 million water and air purification company, Calgon Carbon (CCC). They’ve got a ton of sales, pathetic single digit growth and the exceedingly boring stock looks like its breaking out the $16 range. Judging by previous breakouts, shareholders can look forward to a 5-10% increase over the next few weeks—at best. From what I can tell, this company is in a hot sector and nothing else. Boring investors unite; this one is for you, definitely not TIM or anybody with a heartbeat.



















