Nam Tai Electronics (NTE) today moved up 41.08% after reporting better than expected earnings.
Bullish investors were especially excited on Q3 revenues of $380.3 million vs. $127.6 million in Q3 of 2011. NTE reported earnings of $0.54 compared to $0.02 in the prior comparable quarter.
It is unusual for a company in this line of business to report this kind of increase. There is no indication of any scam or impropriety in the earnings report.
However in view of a 41% jump in the stock investors should be mindful of previous scams in a number of small Chinese companies that royally burned American investors.
Most notable among Chinese companies that were accused of fraud resulting in their stocks becoming worthless are Longtop Financial and Sino-Forest.