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What: China Shen Zhou (AMEX: SHZ ) shares jumped 25% today, after the company announced guidance for 2011.
So what: Shen Zhou expects revenue to rise 164% next year to $38 million, from an expected $14.5 million in 2010. Net income is expected to come in around $11 million.
Now what: The explosive growth Shen Zhou is experiencing will apparently continue into 2011, as demand for nonferrous metals and fluorite remain strong. Shares have been on a rampage since early October, and today's guidance shows the move should have some strong fundamental backing next year. I would like to see a pullback before jumping in, but I like the positive guidance, and I think shares have further to run.
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