GRRF 3Q 09 EPS

I decided to hold this one through their earnings ( a highly risky proposition) and it has paid off. Closed normal hours trading at 4.92 after it was pinned flat all day. Trading 5.60 here in the after hours. Showing a 24.26% gain on this trade now. Shorts are trapped here, and they could gap this one yet even higher in the morning. A very key level is the 23.6% retracement which sits at $5.27. I would like to see that level hold in as support. Holding that level would be very positive going forward. Failure to hold that level will cause me to get flat in this name. Tomorrow's action will bring in a lot of day traders, so there is most likely going to be a shake out several sessions down the road. TSTC also reports on Friday, so we have another catalyst as they are in the same sector.

The IBD investor in me thinks that this one could be a 15$ stock at some point in the future as it hits more radar screens. I don't want to make a mistake similar to STAR and get out before the full potential is met. However, these Chinese stocks are slippery as to "when the music stops" regarding accounting standards. Price and volume will guide us as to our ultimate decision. Tangible book value is reported as being 8.95, so to a value player this one is still cheap.


http://finance.yahoo.com/news/China-GrenTech-Corporation-prnews-4077980183.html?x=0&.v=1


Third Quarter 2009 Financial Highlights
-- Total revenue increased by 85.8% year-over-year to RMB394.9 million
(US$57.8 million).(1)
-- Revenue from wireless coverage products and services increased by
97.9% year-over-year to RMB309.3 million (US$45.3 million).
-- Revenue from base station RF products increased by 52.4%
year-over-year to RMB85.6 million (US$12.5 million).
-- Gross profit increased by 67.4% year-over-year to RMB105.2 million
(US$15.4 million).
-- Operating income increased ten-fold year-over-year to RMB29.8 million
(US$4.4 million).
-- Net income attributable to the equity shareholders of GrenTech was
RMB20.1 million (US$2.9 million), compared to a net loss attributable
to the equity shareholders of GrenTech of RMB8.4 million in the third
quarter 2008.
-- Basic and diluted net income per ADS(2) were RMB0.85 (US$0.12) and
RMB0.84 (US$0.12) respectively.


(1) The Company's reporting currency is Renminbi ("RMB"). The translation
of amounts from RMB to United States dollars is solely for the
convenience of the reader. RMB numbers included in this press release
have been translated into U.S. dollars at the noon buying rate for U.S.
Dollars in effect on September 30, 2009 in the City of New York for
cable transfers in RMB per U.S. dollar as certified for customs
purposes by the Federal Reserve Bank of New York, which was
US$1.00=RMB6.8262. No representation is made that RMB amounts could
have been, or could be, converted into U.S. Dollars at that rate or at
any other rate on September 30, 2009.
(2) Each ADS represents 25 of the Company's ordinary shares.