Why Is Telestone Technologies So Volatile?
Southhill Partners submits:
Telestone Technologies (TSTC), a small wireless equipment manufacturer in China, has attracted quite some attention since late last year when its stock price ran from below $5 to over $20 in several months. Riding the opportunity of the 3G buildup in China, Telestone Technologies supplies wireless coverage products to the three wireless operator giants: China Mobile (CHL), China Unicom (CHU) and China Telecom (CHA), and is expected to double its revenue and earnings in 2009.
However, TSTC’s stock is notoriously volatile, often moving up or down 10% in a single day. After hitting an all-time high of $24 in January, it plunged to a low of $12 intraday on February 1st and is currently trading at around $20.