Buy LJ International (Nasdaq:JADE) on Weakness Says Roth Capital

With only one analyst and firm covering LJ International (Nasdaq:JADE) from Hong Kong, recommendations carry weight, and that was the case with Roth Capital's Elizabeth Pierce, who has recommended investors acquire shares of the jewelry company.

The share price plummeted on Wednesday based on rumors about an SEC investigation. But Pierce said she thinks the shares dropped not because of the rumors, but because of a big player selling their shares.

Traders plowed into the shares Friday in response, with volume reaching over 3 times the normal, daily 3-month average.

LJ International closed Friday at $4.17, surging by $0.34, or 8.88 percent.