China did not have a good week last week.  The overall market stunk and China really got hammered.  One of those stocks getting hammered was GC China Turbine Corporation (GCHT).

However, GCHT didn’t stay hammered.  It rallied strongly the last two days of last week, but it still at an attractive entry point (IMO).

GCHT is a licensee and manufacturer of a proprietary two-bladed wind turbine.  Their initial product is a 1 MW turbine that has been a “hot-seller” for the company (according to the company that is).  It is much different that last week’s wind power blog topic, Helix Wind (HLXW).  GCHT is doing utility grade turbines that are being purchased by utilities and regional governments in China.

What is exciting about GCHT is not contained in its historical financials….it is in their press releases. The company didn’t deliver its first turbine until the 4th Q of 2009, but they are on an accelerated pace.  They are estimating revenues and profits of $19.6 MM and $1.5MM respectively.  That is after ZERO revenues the previous 3 Q’s.  The release (read it HERE) goes on to state GCHT is forecasting initial orders of 160 wind turbines, worth in excess of US$135 million and a 2010 revenue forecast of $87MM. The release went on to state that the product line will expand with the addition of $2.5MW and 3.0MW wind turbines.

Here is the chart so you can see what I am talking about:

GCHT is at a crucial juncture…If it can penetrate resistance at around $2.90 and hold above there, I could see it running and retesting the 52-week high of $4.07.  The news is certainly positive for the company and it appears to be heading in the right direction.

Good luck and good trading,

Jeffrey Dean