Big Gain Hunting: JRJC

Despite my intended vigilance on stocks that make mega moves, I missed JRJC's move this week. JRJC enjoyed a relative period of quiet  activity before exploding this past week;

Weekly

So what happened?


News:  partnering with CITIC to launch a Chinese online trading platform.

Ingredient List
Small Float: 21.79 Million shares.
many China stocks making good moves
Growth: First qtr Earnings from june

2014 First Quarter Financial Summary

• Net revenues were $23.2 million, representing a year-over-year increase of 321% from $5.5 million in the first quarter of 2013;
• Gross profit was $17.8 million, representing a year-over-year increase of 389% from $3.6 million in the first quarter of 2013;
• Net loss attributable to China Finance Online was $2.0 million, compared with a net loss of $4.3 million in the first quarter of 2013.

Current market cap 228 Million.

Analysis

JRJC seemed to have the right news at the right time.  This move was not earnings related.  Interestingly,  the market faded  its earnings as the gap was faded:

Everyone would obviously love to capture moves such as this.  I'm not sure that it was justified however, on the news that sparked the run.  I suspect that JRJC will sell off.  If the news of the trading platform is really the game changer that the market's first reaction seemed to think it is, there will be another opportunity to purcahse JRJC when it's earnings start to realize the potential.  This type of event news driven move presents the toughest type of move to capture.  I would be a seller here.