You have logged out You are now logged out.

Buy Longtop Financial Technologies

Email – #237

** Buy Longtop Financial Technologies

This week, we have a new recommendation for you: Longtop Financial Technologies, LTD. (NYSE: LFT). Longtop is a Chinese software company specializing in solutions focused on the rapidly expanding financial services sector in China.

Starting as a financial systems integrator in 1996, Longtop made the transition to a software solutions provider in 2001, and it hasn’t looked back since.

According to a report issued in 2008 by IDC – an independent research firm covering the financial IT (Information Technology) area – Longtop has quickly risen to become the “most competitive banking IT solutions provider” in China.

That’s not too surprising, given Longtop’s impressive list of facilities:

*  A post-doctoral research center
*  Five solution delivery centers
*  Three product research centers, staffing 80 software engineers
*  39 service centers located in 20 provinces

Longtop’s growing list of customers includes not just banks, but insurance companies and financial departments of large-scale companies. The company plans to leverage its experience and technology internationally, providing cost-effective solutions to customers around the globe.

That shouldn’t be a problem, as Longtop’s products have already passed ISO27001 and CMMI-4, two stringent international financial certification standards. The company was recognized two years in a row by American “Global Service” magazine, as one of the “Global Services Top 100” service companies.

Speaking of solutions, Longtop’s cover all the major IT requirements of China’s financial institutions: channel, business, management and value-added solutions.

The company’s constantly looking for expansion opportunities, and recently acquired Jactus Labs, a leading Chinese third-party software testing company focused on the financial software industry.

As China’s rapidly growing middle-class continues its saving and investing habits, Longtop should benefit as banks install increasingly sophisticated software solutions for their customers. The company recently noted it will exceed its previously issued guidance for its fiscal third quarter and all of 2009.

***Action to Take***

Buy Longtop Financial Technologies, LTD. (NYSE: LFT) at $15.75 or better. And place a sell stop at $11.75 for protection. Speculators may want to take a look at the June $17.50 calls (LFT-FW). But don’t pay more than $1.85.

If you have any questions, feel free to call one of our VIP Trading Services representatives at 888.570.9830 (toll-free) or e-mail: viptrader@oxfordclub.com , or call Pillar One Advisor Rick Pfiefer at 800.438.3040 or 407.667.4729.

Elsewhere in our portfolio we hit the trailing stop on Shaw Communications (NYSE: SJR), essentially breaking even on the trade. If you haven’t already done so, sell your shares.


Current Portfolio:

Stock: Longtop Financial (NYSE: LFT)
Country: China
Current Price: New
Comments: Buy at $15.75 or better. Sell stop is $11.75

Stock: Ecopetral, SA (NYSE: EC)
Country: Columbia
Current Price: $18.44
Comments: Buy. Sell stop is $14.25

Stock: Shaw Communications (NYSE: SJR)
Country: Canada
Current Price: Sell
Comments: Stock hit trailing stop.

Stock: Companhia Brasileira (NYSE: CBD)
Country: Brazil
Current Price: $26.20
Comments: Hold. Sell stop is $23.

Stock: Sociedad Minera de Chile (NYSE: SQM)
Country: Chile
Current Price: $26.47
Comments: Buy. Sell stop is $19.00.

Stock: NDS Group (Nasdaq: NNDS)
Country: United Kingdom
Current Price: $59.89
Comments: Buy. Sell stop is $40.

Stock: Fresenius Medical Care (NYSE: FMS)
Country: Germany
Current Price: $44.22
Comments: Hold. Sell stop is $39.