My stock idea today–China Electric Motor (CELM)–is appropriate for fans of high-risk, high-potential stocks. The company makes small electric motors of the kind that power automobile windshield wipers, lawn trimmers, hair dryers and air conditioners. With 31 product lines that include 1,200 different specifications, the company’s motors power an enormous range of devices. Roughly half of sales go to Chinese customers and sales growth has averaged 78% for the past five years, with earnings increasing every year. The company’s Q4 earnings report on March 31 showed a 50% jump in earnings (to 15 cents a share) on a 58%...
