Penny Stock Pick - CPSL

Everybody knows China is an economy growing rapidly. However since November of 2007, people have been dumping Chinese stocks for profit taking and also overall weakness in the global equities. But don't forget China is still a growing economy it's probably a good choice to buy a material related stock such as China Precision Steel, Inc. (CPSL), a steel manufacturer. Especially now that the Olympic is approaching and the stock is a lot cheaper compared to last year.

Technical
The technical chart shows positive sign as the stock has just rose above the 50 day moving average. In addition with MACD now above 0 we should see more upside from this stock.

Insider
The company insiders were bullish about the stock and sold about 1.5 million shares recently. However the insitutions were bullish and add 24% of shares.

Financial
The revenue grew rapidly in fiscal 2007 as well as first two quarters of fiscal 2008. Net income jumped 8700% in 2007 and is still growing. The most recent balance sheet also shows very strong cash level.

Conclusion
No question, a Strong Buy stock.

Penny Stock Score (1~5) 5 is highest
1. Industry (Chinese Metal): 5
3. Technical: 4
4. Insider: 3
5. Financial: 5
Recommendation: Strong Buy