An interesting speculative investment opportunity has emerged in Vmoto (ASX: VMT). Vmoto design and manufacture motor scooters, but now concentrate on electric scooters. They have a small presence in Europe, but during 2013 they opened a factory in China and sales there have outstripped all expectations. They supply electric scooters under contract as Power Eagle models and under their own logo through their recently opened stores. More stores are planned. The company has provided monthly profit figures since their first profit in June 2013. The turnaround has been remarkable. With just the December figures to be released, we estimate a profit of $566,000 for 2013. We have also projected forward a conservative profit of $2.6M for 2014. Further profit growth would appear likely.

This is a remarkable return for a speculative equity. If these results do eventuate, we will re-classify them from a speculative to an initial profit equity. Of course, there are all sorts of negatives possible, but continuing luck is also possible. Many other investors seem to share this opinion.

Our average entry price is 2.1c. Shares have increased so far just today (23 Jan) from 4.8c to 5.4c.

(Note: shareprice finished day at 5.7c. Above ratios based on sp of 5.4c)

Announcement released 30 Jan by Vmoto indicates that profit will be about $537,000 for 2013. Our conservative 2014 profit projection remains unchanged.