Jinpan International (JST: Nasdaq)

February 15, 2010

Jinpan International (JST: Nasdaq) has now implemented its previously announced 2-for-1 forward stock-split, which means you now have twice as many JST shares. There has been no change in the value of your JST holdings as the share-price has also been cut in half accordingly from approximately $48 to $24. To recap, Jinpan International was announced as a Strong-Buy on 14 September 2009 at the $27.50 per share level. JST has been a solid winner with a strong upward move to an interim pre-split high of $52.88 per share on 6 January 2010. My current recommendation is to maintain open JST positions.

November 17, 2009

Jinpan International (JST: Nasdaq) was announced as a Strong-Buy on 14 September 2009 at the $27.50 per share level -- your JST shares are now trading substantially higher at the current $36 range. Jinpan International is a leading designer, manufacturer, and distributor of cast resin transformers for high voltage distribution equipment. The company’s transformers allow high voltage transmissions of electricity to be distributed to various locations at lower, more usable voltage levels.

China-based Jinpan International is our top “Asian-Rim” growth stock. George Soros has called China -- with its rapid GDP growth and the potentially lucrative privatization of state-owned-enterprises -- “the opportunity of a lifetime.” And in fact, just last month it was confirmed that the country’s massive government spending and bank lending has helped China’s growth rate accelerate to an 8.9 percent pace in the third quarter – far outstripping expansions elsewhere around the globe. And in a recent speech at Shanghai’s Fudan University, Soros further solidified his stance on China stating “China has been recovering and its pace of recovery will be faster than the rest of the world.”

I agree – and that is just one reason why I believe JST will continue to be a strong portfolio performer over the coming business quarters. Further, Forbes has now named Jinpan to its list of “Asia’s Best 200 Under A Billion” for the third consecutive year. Jinpan was one of only 78 companies from the China/Hong Kong subset to make this prestigious list. JST is also taking advantage of significant growth opportunities in the U.S. and other international markets and recently announced the opening of its brand new 20,000 sq-ft office and warehouse facility in Carlstadt, New Jersey, to serve its growing base of U.S. customers.

The company’s 3rd quarter financial results were just released and were highlighted by:
-- 3Q09 Gross Margin Increases 12.3% to 43.7% Compared to 3Q08--
-- 3Q09 Operating Income Increases 34.0% to $9.8 Million Compared to 3Q08 --
--3Q09 Net Income increases 81.6% to $9.4 Million Compared to 3Q08 -
-- Raises FY09 Net Income and Diluted EPS Estimates --

I see Jinpan International as operating from a position of strength as it capitalizes on China’s impressive growth rate and also on emerging opportunities in other world markets, which are being driven by continued global economic recovery. We expect this positive trend to continue for Jinpan International and its shareholders. Maintain your JST positions; I am setting an initial “Profit-Protect” point at $42 per share.

September 14, 2009

I am announcing an Immediate-Buy on Jinpan International (JST: Nasdaq) at the current $27.50 per share level. China-based Jinpan International is a leading designer, manufacturer, and distributor of cast resin transformers for high voltage distribution equipment. The company’s transformers allow high voltage transmissions of electricity to be distributed to various locations at lower, more usable voltage levels.

After its stock price was recently hammered from $37 to $26 as a result of reduced guidance in Mid-August --- the company reported a jump in second quarter profit of 44% but warned that earnings growth would slow --- JST is now available for less than 10 times estimated earnings and less than 2 times book value. Jinpan also just announced the completion of its phase 1 renovation and construction of its Shanghai facility a month ahead of schedule – which is expected to increase the company’s total transformer capacity by 11%.

I see Jinpan as well-positioned to deliver increased shareholder value over the coming quarters upon what I anticipate will be modest global economic recovery in 2010. Jinpan continues to expand sales internationally and most recently posted a 16% increase in net sales outside of China in the second quarter as compared to the same period last year. Buy Jinpan International (JST) now at the current $27.50 per share level.