Small Cap Stock Pick Of The Week – CWLT
Oct 8, 2009 Small Cap Stock Picks
Euro Tech Holdings Co. Ltd. (CLWT)
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This Weeks Top Small Cap Stock Pick is CLWT which broke out of its extremely bullish ascending triangle pattern on an insane increase in volume. CLWT is a chinese water company which moved today along with some other related stocks such as DGW and another favorite of mine, Recently IPO’d TRIT.
CWLT has a relatively low float so this stock can certainly moved as we witnessed today. The company also issued a 300k share buyback program back in July which expires in July 2010 which is good news for small cap investors. I bought CLWT today @ 1.88 after it had broke out of resistance around 1.75 and alerted the Black Service crew of the opportunity today via our real time trade alert portals.
Price peaked right near prior resistance of 2.30 with todays high topping out @ 2.26. I think given a little patience this stock could be re-testing these highs and breakout to new highs as well. I would like to purchase another smaller position here in CWLT given the chance on a retest of the breakout zone around 1.75 to average down my position.
Quote from thestreet.com
Euro Tech Holdings has a small 6.4 million-share float, with only 260 shares short as of Sept. 10, according to Yahoo! Finance. More than 50% of the company’s shares are held by insiders with another 2% owned by institutions.
Some investors were skeptical of Thursday’s advance on Internet message boards, arguing that Euro Tech and the other Chinese water plays would see a pullback heading into the weekend. Others argue that Euro Tech could continue to climb with momentum building and few shares sold short.
Investors who were very bullish on Euro Tech’s prospects called it the “best buy” of the Chinese water plays and will easily top $3 a share and could run up to $5 by the end of the year.
