I could be time to pick up some more shares of Longtop Financial Technologies Ltd (PINK: LGFTY) and if you remember last time I alerted this stock on August 19; you could have made as much as 198%! Last time, this stock just tore off from $.53 to as high as $1.58 that same afternoon!

Recently, this stock has been trading in a range of about $.12 to $.25 and if you can get in at a good price, there is a real chance to hit it big. Yesterday, LGFTY closed at the high of $.1698 for a gain of almost 10% and that could just be the beginning as this stock has sold off so much over the last few weeks.

Don’t forget the lowlights of what is going on with this stock because I don’t want you to marry it just yet…

Sign-up for my Free Alerts and more!

LGFTY was halted shortly after Deloitte resigned as its auditor. Deloitte said in its resignation letter that it found falsehoods in the company’s financial statements and experienced “deliberate interference by certain members of Longtop management” in the audit process, including “unlawful detention” of audit files.

Even though this stock was trading at $18.93 earlier this year – LGFTY may face civil charges by the U.S. SEC, signaling stepped-up regulatory enforcement of possible accounting irregularities at Chinese companies.

Check out some of my Recent Article Winners: ANX 32%, PUDA 2150%, SNGX 23%, YRCW 81%

Technical Analysis:

The next resistance level for LGFTY isn’t even until $.31 and look at the disparity between the 20 and 50 day moving averages (42 cents and 10 dollars)! The full stochastics is finally starting to show signs of positive movement and big positive movement at that! The MACD had a positive cross a couple weeks ago, but it looks a little premature…

The Bottom Line

LGFTY may be in serious troube, but I am not trying to get you $18 here – just enough to make you give your computer screen a high five! There is some serious upside to this stock right now as long as it doesn’t get halted again! Remember, don’t marry this stock by any means and if it starts to look scary; cut it a run!

Check out some of my Recent Article Winners: ANX 32%, PUDA 2150%, SNGX 23%, YRCW 81%

Good Luck,

Ian Decker

Disclosure: No Position

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunitiespresent in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

Disclaimer

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.