CANSLIM.net Company Profile: Jinpan International Ltd., an investment holding company, engages in the design, manufacture, and sale of cast resin transformers for voltage distribution equipments in the People's Republic of China. The company's products enable high voltage transmissions of electricity to be distributed to various locations in lower voltages by their insulation systems. The company's products are used in residential, commercial, and industrial facilities. Jinpan International sells its products primarily in the People's Republic of China and the United States. The company was founded in 1993 and is headquartered in Haikou, the People's Republic of China.  It hails from the Electrical - Equipment which is presently ranked 59th on the 197 Industry Groups list, and while that places it outside of the much-preferred top quartile of groups, strength in other high-ranked leaders including Harbin Electric Inc (HRBN), AZZ Incorporated (AZZ), and Enersys (ENS) helps provide confirming leadership to satisfy the L criteria. The number of top-rated funds with an ownership interest has grown from 47 funds in March ‘07 to 52 funds as of December '07, a sign of increasing institutional interest (the I criteria). It has a good annual earnings history (good A criteria) without any downturns.  Strong quarterly earnings and sales revenues increases in 7 of its 8 most recent quarters have been well above the +25% guideline to satisfy the C criteria.  Management owns a 42% interest in its shares, keeping directors focused on building and maintaining shareholder value. 

What to Look For and What to Look Out For: Its small supply of shares and light trading volumes could lead dramatic price volatility, especially if the institutional crowd rushes in or out.  Look for the stock to confirm a new technical buy signal by breaking out above its $31.59 pivot point with gains on heavy volume in the coming days and weeks. Remember that buyable breakouts require three important components: the stock must clear its pivot point with considerable gains, those gains must be backed by at least +50% above average volume, and the overall market environment must also be healthy.  Much of JST's success will depend on the broader market's ability to sustain a meaningful rally, otherwise 3 out of 4 stocks are likely to struggle. As always, it is of the utmost importance to sell a stock if it drops 7-8% below your purchase price. Deterioration under its 50-day moving average (DMA) line, or worse, its 200 DMA line, would raise concerns and trigger technical sell signals.