This isn’t Rocket Science, its China Automotive Systems (Ticker: CAAS)

I’ve traded China Automotive Systems (Ticker: CAAS) profitably in the past. So when is came up on one of my favorite stock scans recently, I took notice. I had recently read about several automotive companies opening manufacturing in China and this little company seems to be in the right place at the right time. On their balance sheet they have 19.8M in cash, .7M debt (next to nothing), 23.27M shares outstanding, 1.72M float (what?) and 16.8% of those are short. And most important is that the chart says the timing is right for a powerful move up. I bought shares on 10/9/06 as it pulled back.

Some Current Holdings and Change Percent

• China Automotive Systems (Ticker: CAAS) up 13.44%
• FoxHollow Technologies (Ticker: FOXH) up 6.85%
• CarMax Inc. (Ticker: KMX) up 19.69%
• Telecom HOLDRs Trust (TTH) up 15.91%
• Pharmaceutical HOLDRs Trust (PPH) up 7.05%
• NVE Corp. (Ticker: NVEC) up 5.95%

Stocks I've sold include GigaMedia Limited (Ticker: GIGM) and Datalink Corp. (Ticker: DTLK)