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.

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