China Medical Technologies Inc. (CMED) continues to surge higher Wednesday on good breakout trading volume. More than 1.6 million shares have already traded hands compared to a daily average of around 233K. The ticker is currently up by 20.32% on the heels of its 2Q10 results.
Early this morning, CMED said the company posted a second quarter net loss of $442K, narrower than $7.4 million in the prior year period. CMED also said it saw its 2Q revenues increase by 21.5% on a YoY basis to $30.2 million. Meanwhile, the co.’s Q3 adjusted earnings per ADS are expected to be not less than $0.42, and revenues to be not less than $32.9 million, representing a YoY increase of not less than 27.7%.
Technically speaking, the shares of CMED continue to catch aggressive bids intraday as the stock jumps to its September highs. While the ticker has underperfomed the broader SPX by 22%, it recently was able to bounce off the $11.50 level where it found support. It remains to be seen if CMED will maintain its PPS above the 2-month $11.50 -$12.50 range. If it can maintain it, and this depends if overall action in DOW remains constructive, it might be enough to lead its price to a further extension.
CMED currently trades at a forward multiple of 7.47 and a P/E to growth ratio of 0.31. The stock has been moving relatively higher over the past four months, and is currently trading above the 50-day ; $12.34, and 200-day ; $12.18, moving averages.
China Medical gained $2.43, or 20.65%, to $14.20 rtq. at 2:02 E.T. in Nasdaq composite trading.