Fuxing China (DC9.SG) +6.1% at $0.175 on heavy volume as zipper maker's sharply-higher 3Q10 earnings pique interest. Net profit at CNY22.7 million vs CNY9.9 million year earlier as gross margin more than doubled to 27.8% vs 13.1% on strong demand from customers. 

Earnings also higher than CNY14.9 million profit in 2Q10. Cash position strong at CNY716.4 million ($138.4 million). In bid to drive growth further, Fuxing in talks to acquire 3 privately-held companies in China. 

 

“The acquisition of these three zipper-related businesses will make Fuxing a fully integrated zipper maker,” says DMG; has Buy call with $0.255 target. 

 

On technicals, RSI still heading up but yet to enter overbought region, while recent bullish crossover on MACD points to more upside in near term. Resistance at 52-week $0.19 high.