March 10, 2010 (Chinavestor) Shares of Fushi Copperweld (NASDAQ:FSIN) opened over +6% higher on Wednesday following a record 2009 fourth quarter financial report. Revenues and earnings increased from previous quarter and from same quarter 2008 helping the stock to continue the advance it started in the middle of February. But the overbought indicator picked up the sudden price increase of the company, suggesting upside may be limited after today's big day.
Another factor to consider, besides the 30% increase in the last five trading days, is that the company issued a cautious outlook. Today's earnings announcement said "Based on current business trends and the visibility the Company has from fourth quarter performance, the Company expects adjusted first quarter fully diluted earnings per share between $0.22 and $0.24 and adjusted full year fully diluted earnings per share between $1.20 and $1.25, both based on an estimated weighted average diluted share count of 33.4 and 35.2 million shares, respectively."
Given that Fushi Copperweld (NASDAQ:FSIN) reported EPS of $.34, out look is very dim. Additionally, the company said "The 2010 first quarter is seasonally the Company's weakest quarter due to the timing of the Chinese New Year, during which the Company's operating facilities are closed for two weeks.", implying that revenues will be adversely effected as well.
While I may be wrong here, I think it's time to cash out of the stock TODAY. Take profits and run!
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