On Friday I wrote a brief note regarding my long position in LJ International (JADE). Here is a 6 month chart:
- Bullish relative strength
- Bullish 50 day Moving Average
- Bullish 200 day Moving Average
- Support at 8.94
Fundamental Analysis:
- LJ International reported 3rd quarter 2006 earnings of $0.12 per share, up 20% yoy. Revenues were $33.23M, 25.2% above yoy.
- In February JADE raised 4th quarter earnings projections of $0.16 per share on revenue of around $40 million, up from prior view of $0.04-$0.11 per share on $33-27 million in sales. They also boosted full year earnings projections to $0.34 per share on $123 million in revenue, up from proior forecast of $0.20-$0.28 on sales of $115-$120 million.
- JADE currently trades at 37.24 times earnings, and an average long term growth rate of 36.0% and 56.0% short term growth rate. Actual P/E for Trailing Four Quarters is 43.5, and Forward Four Quarters Estimate is 32.4.
*A fellow investor brought the implied volatility of JADE to my attention- there is heavy buying on April 10.00 and April 12.50 calls, and very light open interest in April 10.00 puts.
JADE announces 4th Quarter 2006 earnings on March 29.
$10.54 (04/02/07)
