May 11, 2006
SpeculatingStocks.com Stock Pick: China Finance Online Co. Ltd. (JRJC)
Stock Price: $6.44 (speculative short-term strong buy)
China Finance Online Co. Ltd. specializes in providing online financial and listed company data and information in China. The company offers subscription-based service packages through its financial Website at jrj.com.
China stocks have been up significantly so far this year. JRJC participated in the run earlier this year when it rose above $9.50 in early February. JRJC's all-time high is $15.99, which was reached back on October 15th, 2004, its IPO day.
JRJC is attempting to regain momentum and move higher again in anticipation of earnings on Monday, May 22nd. JRJC reported a net income margin of 56% for the latest quarter. This is high compared to most companies, but low compared to JRJC's other quarters. It leaves room for improvement and should show in the company's Q1 report.
JRJC has 18.22 million shares outstanding and only 11.72 million in the float. JRJC is well positioned in the Chinese market.
SpeculatingStocks.com Target Price: We expect JRJC to reach $8.00 - $9.00 within the next 15 - 30 days.